Innovative and once bubbling Chinese smartphone and internet brand LeEco seems to be plunging deeper into financial woes. Just recently, a lawsuit was instituted against the company by a Chinese ad agency for non-payment of its marketing fees. The company has in the past been laying off workers estimated to be nearly 50% of its workforce. The innovative tech giant known for its cheap flagship models has been unable to release new smartphone models like it used to do. Currently, the company even seems to be shutting down some of its mobile phone service centres across China.

An internet user has exposed a notice posted on the door of one of LeEco’s third-party service centres located in Shanghai. As is known, Shanghai is one of the major cities in China but the poster informs customers that the business has been suspended due to operational adjustments and that the shop no longer accepts LeEco phones.

Related: LeEco CEO Jia Yueting Steps Down Amidst Financial Troubles

Also, a letter purportedly sent by a LeEco phone repair station to a fan using the brand’s model appears to indicate that the repair centre has been lacking spare parts for several months now due to the manufacturer’s inability to provide parts. The letter also stated that other accessories are available. We don’t know if these two cases are just isolated ones or if indeed the company’s mobile phone arm is gradually disintegrating. We do hope the company bounces back soon, it is high time we got a Snapdragon 835-powered LeEco phone with its cheap price tag. Now, that may not likely be happening anytime soon.

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Chinese smartphone maker cum internet giant LeEco may have just gotten a much needed lifeline which could save the company from practically hitting an iceberg in the troubled waters it is sailing currently. The lifeline comes in the form of a new round of investment from Chinese property developing firm Sunac China Holdings, estimated to be worth 15.04 billion yuan ($2.18 billion USD).

LeEco’s CEO Jia Yueting had last year hinted that the company was facing some challenges financially, occasioned by the rapid pace with which the company tried to expand, both on the domestic plane and internationally. There were signs also that the company did drop some of its staffs and just last December, it was almost prevented from showing EPL matches live by the right holder after defaulting in its payment schedule. This latest financial lease of life comes in form of series of investments spread across LeEco’s numerous holdings.

Sunac Real Estate announced that it plans to invest 6.04 billion yuan in LeEco’s Leshi Internet Information and Technology Corp Beijing by acquiring an 8.61 percent stake. The investor also plans to invest 1.05 billion yuan in LeEco’s film production company, Leshi Pictures, by acquiring a 15 percent stake, and pay another 7.95 billion yuan ($1.15 billion) for a 33.5 percent stake in Leshi Internet’s subsidiary Leshi Zhixin, known for its smart Internet TVs. The real estate company also hopes to collaborate with LeEco in areas such as intelligent hardware, real estate, and smart homes. It also pointed at industrial real estate as an area for greater cooperation between both companies.

Read More: Sign of a Major Layoff as Image of LeEco Employees Queuing Up Surfaces Online

This, no doubt, will offer LeEco some breathe of fresh air as the funds will likely help solve some of its financial difficulties. The investment will be of benefit to us all, because now the company can concentrate in developing innovative products such as smartphones, film services, sports, and its driverless electric vehicles.

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