Kai-fu Lee, chairman and CEO of Beijing-based incubator Innovation Works, has announced the company's investment in online video and Internet TV firm LeTV (Leshi) (300104.SZ). According to Lee, Innovation Works has agreed to invest a portion of the company's Android Platform and App Developer funds into LeTV's television business. LeTV recently announced the launch of a new smart TV product, the "LeTV Super TV."
According to LeTV, the company has already formed a subsidiary holding company responsible for LeTV television R&D. The product manufacturing rights for the "LeTV Super TV" have already been transferred to a separate OEM. LeTV has undertaken a commitment to invest between RMB 500 mln and RMB 1.5 bln into television manufacturing and development. As of June 2012, LeTV had capital reserves of RMB 2.4 bln and short-term debt obligations of RMB 4.7 bln. Accounts payable were RMB 3.2 bln, for an equity-debt ratio of 52%.