On December 12, media outlets reported that Jia Yueting, the founder of LeEco, was added to the list of defaulters. The reason behind this development stems from a legal dispute with Ping An Securities, not Huafu Securities as initially reported. Jia failed to meet the financial obligations outlined in binding legal documents, leading to his inclusion in the untrustworthy executors' list.
According to the Chinese Enforcement Information Disclosure Network, Jia was listed as an untrustworthy individual by the Beijing No. 3 Intermediate People's Court. The enforcement case number is (2017) Xia Lu No. 00082, and it was published on December 11. The legal documents indicate that Jia owes Ping An Securities approximately 4.793 billion yuan, which includes the initial transaction amount, interest, breach-of-contract penalties, notary fees, and legal expenses.
The case reportedly originated from a stock repurchase agreement between Jia and Ping An Securities. As part of the obligation, Jia was required to pay RMB 462.1 million as the initial transaction amount, RMB 4.19 million in interest, and an estimated RMB 909.89 million in breach-of-contract penalties. Additionally, he was required to cover notary fees of RMB 1.426 million and legal fees of RMB 256 million.
Jia has not fulfilled all these obligations, which led to his listing as a person who violated the property reporting system. This move reflects the increasing pressure on high-profile individuals who fail to meet their legal responsibilities.
Interestingly, this isn't the first time LeEco-related entities have faced legal consequences. In September of this year, both LeTV Holdings (Beijing) Co., Ltd. and LeSports Mobile Intelligence Information Technology (Beijing) Co., Ltd. were also added to the defaulters’ list. LeTV Holdings had two cases involving total debts of around 107 million yuan, while LeSports Mobile was involved in a single case worth approximately 57.17 million yuan.
Jia’s relationship with Ping An Securities dates back to 2010 when the firm acted as the sponsor and lead underwriter for LeEco’s initial public offering. Over the years, Jia pledged shares multiple times for financing purposes. According to LeEco’s public announcements, Jia once pledged 21.28 million shares to Ping An Securities in June 2014 as part of a stock repurchase agreement.
Despite multiple announcements regarding equity pledges and their subsequent releases, there has been no official confirmation that the shares pledged to Ping An Securities were ever fully released. This has raised questions about the status of the debt and whether Jia continues to owe the company.
In May 2015, LeEco conducted two major share transfers, with ratios of 12 shares per 10 and 10 shares per 10. Based on the stock price at the time, Jia may have used these pledged shares to secure a loan of approximately 462 million yuan from Ping An Securities. However, the full details of the arrangement remain unclear.
As the situation unfolds, Jia Yueting’s financial troubles continue to draw attention, highlighting the risks associated with high-stakes corporate financing and the legal consequences of failing to meet obligations.
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