Embattled tech firm Le.com announced on Monday it is expecting a loss of about 310 million yuan (US$49.15 million) in the first quarter, compared with a profit of 125 million yuan in the same period last year, Yicai.com reported.
According to the report, the company’s reputation and credibility remain immersed in the eddies of negative public opinion due to the tight funding and liquidity of related companies.
In addition, advertising revenue, terminal revenue, and membership income all fell substantially in the first quarter of 2018.
Le.com stated that at present, management is making efforts to reactivate the company’s cash flow as well as the supply and sales system.
At the same time, the company is significantly reducing various costs and actively negotiating loan extensions with relevant financial institutions.
The company is also actively coordinating with its private related parties to effectively resolve its associated receivables to ease financial pressure.