Beijing Government Orders LeEco’s Ex-Chairman Back to China by Yearend
The Beijing Securities Regulatory Bureau released an announcement on December 25 that former LeEco chairman YT Jia must return to China by December 31. Jia is required to fulfill his duty as LeEco’s actual controller to deal with LeEco’s risks and protect investors’ rights and interests.
The following is the announcement:
Circular of the Beijing Securities Regulatory Bureau Concerning its Demand that YT Jia Return to China
YT Jia:
Recently, the listed LeEco Internet Information and Technology (Beijing) Co, Ltd (hereinafter referred to as LeEco) and other companies subsidized to it have confronted with difficulties in operation. As actual controller and former chairman, when the company was in urgent need of money, you failed to fulfill your promise to provide an interest-free loan. The bureau has issued a Decision of the Administrative Regulations on YT Jia (Beijing Securities Regulatory Bureau administrative regulations [2017] no. 149) for your violation of commitment. Up to now, you still haven’t fulfilled the promise nor sent a report of rectification to the bureau.
On September 13, 2017, the Beijing Securities Regulatory Bureau issued Regulatory Supervision on YT Jia([2017] no. 256), which clearly required you to immediately return to China as soon as you read it. The listed company Beijing Securities Regulatory Bureau conveyed to you the requirement to fulfill your responsibilities many times, but you still have not made any action. You have stayed abroad on grounds of automotive business investment and financing. But the company you control owes large debts to the listed company, which have not yet been repaid. The relevant behavior seriously infringed upon the legitimate rights and interests of the listed company and the immediate interests of the general investors, causing adverse social impact.
To protect the legitimate rights and interests of listed companies and investors, Beijing Securities Regulatory Bureau hereby orders you to return to China by December 31, 2017, to fulfill your duty as LeEco’s actual controller, to help solve the problem, to handle LeEco’s risks and to protect investors’ legitimate rights and interests.
We so hereby announce.
Beijing Securities Regulatory Bureau, China Securities Regulatory Commission
December 25, 2017
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