(Yicai Global) Aug. 16 -- Coolpad Group Ltd. [HKG:2369], a telecoms equipment maker chaired by Jia Yueting, founder of cash-strapped LeEco, is running into financial troubles, Hong-Kong based newspaper Wen Wei Po reported.

The Shenzhen-based firm is struggling with debts as its liabilities outstrip its assets, the company said recently. Its auditor has questioned the sustainability of business operations and the board is in talks with banks, institutions and potential partners to devise a more sustainable business plan.

Coolpad's operating income plummeted by 52 percent to USD341 million this year, according to unaudited estimates up to the end of July.

The firm issued a succession of earnings warnings and posted an operating loss of HKD460 million (USD58.8 million) at the end of March. The loss was expected to rise to between HKD600 and HKD800 by the end of the first half with a revenue slump of over 50 percent on the year, Coolpad said in a statement in April.

Market estimates suggest the group lost around HKD3 billion last year. A number of mainland banks have already lodged claims for loan repayments and more creditors are expected to do the same in the coming months, which could put Coolpad into a debt crisis akin to its chairman's better known problem child, LeEco.

Coolpad was unable to publish its 2016 annual report on time as the auditor requested further information. Its shares were suspended from trading on March 31 with a closing price of HKD0.72 (USD0.09). The suspension will remain effective until the results for last year are disclosed.

The firm said it was working with its auditor to publish the report as soon as possible.

China's Jiemian News estimated that Coolpad was the ninth biggest Chinese smartphone brand last year, by sales, but a Taiwan-based analyst at research agency Gartner said it fell to number 11 in the first quarter of this year.