(Yicai Global) Nov. 15 -- Several funds have downgraded their valuations of Leshi Internet Information & Technology Corp. [SHE:300104], a Chinese tech firm that has faced a series of cash crises since last year.  

China Post & Capital Fund Management Co. [NEEQ:834344], a major Chinese asset manager with an indirect stake in the cash-strapped company, lowered its valuation of Leshi shares from USD1.18 (CNY7.82) to CNY3.92 apiece. Harvest Fund Management Co. and E Fund Management Co. halved their valuations of Leshi stock to CNY3.91.

The Beijing-based multinational corporation halted trading of its shares after announcing a major asset reorganization on April 17. Its stock was trading at CNY15.33 per share before the suspension, and its market cap was about CNY61.1 billion. After the recent valuation adjustments, the firm's market cap has plunged to CNY15 billion, less than 10 percent of its peak of more than CNY160 billion.

Leshi's operating income slumped 64 percent to CNY6.095 billion during the first three quarters of this year, and its operating losses were CNY1.652 billion, per financials for the third quarter that the firm released on Oct. 27. Operating revenue fell 92 percent to CNY554 million last quarter, resulting in net losses of CNY1.015 billion. The company forecast full-year losses for this year.