Analysis Of Leshi Internet Information And Technology Corp.,Beijing

Leshi Internet Information and Technology Corp.,Beijing,was founded in 2004.Leshi was successful to list in 2010,the successful listing made Leshi become China's first company to list in the A-stock markets in the network video industry.Suddenly,Leshi begins to be with limitless scenery.However,Since its establishment,Leshi always gets both praise and blame.In 2015,Leshi was elected to be one of the highest growth companies of the whole world by the World Economic Forum.In the same year,Liu Shuwei,a professor at the Beijing-based Central University of Finance and Economics,questioned the business model of Leshi.Leshi creates a unique business model,which means "platform+content + terminal + application".When all of the companies ran at a loss in the network video industry,Leshi profited,which is really amazing.Jia Yueting,the actual controller of Leshi,always makes a blueprint of the company to raise fund,which is criticized as PPT financing mode.So,as a public company,how is Leshi,how is its financial performance,what is the logic of its business model,is its profitability sustainable?This paper will use Harvard financial analysis framework and the theory of industry chain to analyze Leshi comprehensively,analyze its strategic positioning,and then validate it on financial performance.As a consequence,firstly,this paper will briefly introduce the Harvard financial analysis framework and the industry chain theory.Secondly,based on the analysis of the network video industry as well as the strategic positioning of Leshi,come to the conclusion that Leshi is trying to build a vertical industry chain in the network video industry.Moreover,through the analyze of the financial information and the accounting policy in the financial reporting,come to the conclusion that the choice of two different development strategy has different influence to the company.Then,through in-depth analysis of Leshi,finds out the problem of the company,presents a real Leshi.Finally,the prospects on the basis of the analysis before,it is concluded that although the network video industry is great,the vertical industry chain model is feasible in theory,but the practice of Leshi is obviously failed,its future isn't clear,and it faces many risks.