The Chinese manufacturer of smartphones Coolpad, under the control of LeEco, a company suffering from financial problems, warned about further delay in the publication of the final report for 2016 due to questions from the auditors, Reuters reports..
The annual report Coolpad was to be made public in March, but the company has already postponed its publication several times. Since the same time, trading of Coolpad shares on the exchange.
Coolpad takes additional time to provide auditors with all the information about their activities, including the rationale and commercial details of the advanced advances and / or debt payments, explained LeEco Chairman Jia Yueting in a document sent to the Hong Kong Stock Exchange.
Jia Yuehtin, who founded the LeEco group of companies, is the largest shareholder in Coolpad, owning 28.83% of the company's securities. At the end of June 2017, the top manager admitted that LeEco's cash problems were more serious than anticipated, and the funds that the company managed to attract in recent years are not enough to help the Chinese vendor overcome the financial crisis.
In Coolpad reported that they received from the Exchange letter, which indicates the conditions for the resumption of the sale of shares of the company. Among them - the publication of the report, the investigation and provision of all the necessary information so that investors can assess the financial situation of the company. Coolpad promised to take measures to fulfill the above requirements, but the specific period to which this will be done, did not specify.
In May, Coolpad unaudited the report, which reported a loss of 4.23 billion Hong Kong dollars ($ 542 million) in 2016, while in 2015 the company earned a profit of 2.3 billion Hong Kong dollars (295 million US dollars ).
Coolpad, which in 2013 was among the largest mobile phone manufacturers from China, in the first quarter of 2017 dropped to 14th place in the rating, according to the data of the analytical company Canalys.
Market experts warn that leading Chinese brands such as Huawei, Oppo and Vivo will continue to press smaller competitors and in 2017, at their expense, will strengthen their positions.
Before the exchange suspended the sale of Coolpad shares, in the first quarter of 2017 its securities fell in price by 10% and traded at the level of 0.72 Hong Kong dollars (about 9 US cents).