Only days after it entered the US market, LeEco's chairman Jia Yueting has confirmed that the company is facing a severe financial crunch and has a hard time in raising funds. This comes only two weeks after the company has been accused of late payment.

Jia Yueting has confirmed that LeEco is facing a shortage of cash and suffering from expanding too fast and in too many directions. To avoid possible end, LeEco will limit its expansion drastically by implementing cutting strategy and production integration. The first step is to slash his annual salary to 1 Yuan or 15 cents

It looks like the biggest problem is the car division , as it spent 10 billion yuan in early development. It's unclear how bad the situation is and whether future product launches will be affected.

No company has had such an experience, a simultaneous time in ice and fire. We blindly sped ahead, and our cash demand ballooned. We got over-extended in our global strategy. At the same time, our capital and resources were in fact limited.

Our fundraising ability isn't strong. The scale of our external fundraising had trouble satisfying the demands of our rapid expansion," said Jia Yueting, Chairman of LeEco.