Leshi climbs by daily limit amid extraordinary general meeting

The shares of Leshi Internet Information and Technology, the listed arm of debt-laden technology company LeEco, rose by the 10 percent daily limit to 5.35 yuan by 11:00 on Friday.

On Thursday, Leshi's shares climbed by the 10 percent daily limit for the first time after it resumed trading in the Shenzhen Stock Exchange from January 24, Shenzhen Economic Daily reported.

Its share price settled at 4.86 yuan by the close of trading on Thursday and the total value of the shares traded reached 1.27 billion yuan, with a turnover rate of 9.22 percent.

Industry analysts believed the rise was because capital was betted on the prediction that good news may be released at the company's extraordinary shareholders' general meeting held on Friday, the report said.

The meeting, held for the first time this year, will bring six proposals to the table, which include change of the company's registered capital, modification on the company's articles of association, providing a guarantee for holding subsidiaries, appointing Yang Qing as the supervisor of the third board of supervisors of the company, changing the accounting firm and nominating Wang Lei to be a candidate for the independent director of the third board of the company.

On Thursday after its share rose by daily limit, the company clarified in an announcement it has not formed any substantive plans and intentions on the "reorganization" mentioned by some media.

Responding to the absence of Sun Hongbin, chairman of Leshi, at Friday's meeting, Zhao Kai, secretary of the board, said Sun's absence does not mean that he does not care about the development of the company, according to a report by china.com.cn.

Liu Shuqing, general manager of the company, said at the meeting the major problem faced by the company is the accounts of the related party transactions are huge, Securities Times reported.

Liu said although the company has stayed in close communication with related parties, there is no substantial improvement.

As institutions supervised by regulators are not allowed to close out, the number of individual shareholders has risen rapidly after Leshi resumed trading, Caixin reported. By Feb 9, the number of the company's individual shareholders has risen to 336,000 from 185,000 before it resumed trading.

At present, Leshi's largest shareholder Jia Yueting holds 1.024 billion shares of the company, which account for 25.67 percent of its total shares.

Zhao said at the meeting the communications between the board of directors and Jia as well as Jia's two agents in domestic market have been very smooth and the problems of related transaction arrears are all in communication, thepaper.cn reported.

"The disposal (of Jia's shares) is his personal matter. The possibility of being liquidated is also his personal business. If the closing line is triggered, we will disclose it," Zhao said, according to the report.