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Zen Soo

LeEco founder Jia Yueting is no longer the legal representative for the company as the financially beleaguered firm continues to struggle to turn its business around, according to mainland media reports.
On Monday the Beijing News reported that LeEco’s chairman of the supervisory board, Wu Meng, has replaced Jia as the legal representative for LeEco, effective June 13. Wu has been an executive at LeEco since 2004.
A legal representative for the company is the employee with the legal power to represent and act on a company’s behalf, including entering legally binding contracts.
Based on LeEco’s business records, Wu has also replaced Jia’s elder sister, Jia Yuefang, as manager for the company.
A LeEco spokesperson declined to comment on the matter.
Jia’s change in status comes as LeEco continues to struggle with financial problems.
In May, Jia stepped down as chief executive of LeEco’s Shenzhen-listed arm, Leshi Internet Information & Technology, and was replaced by Leshi vice president Liang Jun. Jia however remained chairman of LeEco.
Last week, Jia admitted at Leshi’s annual shareholder meeting that LeEco was still facing cash flow problems, despite a 16.8 billion yuan (US$2.47 billion) investment from real estate developer Sunac China Holdings and other investors at the beginning of the year.
He said that the financial problems were “more severe than we expected” and added that the situation in recent months is worse than last year.
“We thought that we could use 9 billion yuan to solve all the problems. But we made some mistakes and it turns out that [the money] is not enough,” he said.
LeEco first started out as a video-streaming company, but later expanded its businesses to include the manufacture of smartphones, televisions and even developing an electric car.
The firm first admitted it was facing financial difficulties last November, with Jia stating that the company’s expansion had outpaced its ability to raise funds.


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Video streaming provider Leshi, once touted as a Chinese tech titan, edges closer to delisting after reporting huge losses for third straight year

They founded three hot tech companies, but now they’re on a country-wide blacklist

LeEco

LeEco founder Jia Yueting no longer company’s legal representative

Jia Yueting is no longer the legal representative of the company he founded, according to mainland media reports. Photo: Reuters

LeEco admits failure to use funds rightly to turn around business

LeEco founder admits that the company’s cash troubles are more severe than expected. Photo: Reuters

Jia Yueting (L), founder and Chairman of LeEco, and Sun Hongbin, Chairman of Sunac China Holdings Ltd, attend a press conference regarding the strategic investment cooperation in Beijing on Jan. 15, 2017. 15JAN17 SCMP/Simon Song

FILE PHOTO: The LeSee Pro electric concept vehicle by LeEco is displayed during the 2017 CES in Las Vegas, Nevada January 5, 2017. REUTERS/Steve Marcus/File Photoste

Shake up at China’s LeEco comes as investors grow impatient

***ONE TIME USE ONLY, PLEASE CLEAR THE COPYRIGHTS BEFORE RE-USE - OTUO*** Jia Yueting, co-founder and head of Le Holdings Co Ltd, also known as LeEco and formerly as LeTV, unveils an all-electric battery "concept" car called LeSEE during a ceremony in Beijing, China April 20, 2016 Photo: SCMP

Jia Yueting, founder and chairman of LeEco, will step down as chief executive of LeShi Internet Information & Technology Corp Beijing, LeEco’s Shenzhen-listed arm. Photo: Simon Song