With China having recently frozen assets of China-based LeEco and its founder worth of CNY1.2 billion (US$179.88 million), Compal Electronics, a major upstream partner of LeEco, may need to declare NT$700 million in bad debts in the second and third quarters, according to a Chinese-language Apple Daily report citing US-based market watchers.

The market watchers noted that Compal is expected to enjoy a recovery in the second half, but the only problem is LeEco's debts. Compal already declared a total of NT$1.74 billion in losses over the third quarter of 2016 to the first quarter of 2017 and is expected to report losses of NT$400 million in the second quarter and NT$300 million in the third, the paper noted.