Compal Electronics recognizes losses of NT$2.9 billion from LeEco in 2Q17 financial report

Compal Electronics recognizes losses of NT$2.9 billion from LeEco in 2Q17 financial report

Compal Electronics has recognized losses of NT$2.9 billion in its second-quarter financial. It was a results from bad debts from LeEco. Compal so far has accumulate a total of NT$4.28 billion arising from LeEco’s financial crisis.

Compal president Ray Chen added that the company will take a more cautious approach to choosing its smartphone client. Compal also announced to halt its participation in LeEco’s fundraiser.

Since the fourth quarter of last year, Compal has been quarterly making losses. Compal’s consolidated revenues were NT$213.78 billion in the second quarter, up 14% sequentially and 24% on year, while consolidated operating net profits were NT$892 million, down 63% on year because of the losses from LeEco. The company’s net profits in the second quarter reached NT$417 million and EPS were NT$0.06.

Source