Although Sun Hongbin had previously shown public support for Jia Yueting, he now finds himself at odds with the former CEO of LeTV. Under pressure from various stakeholders, Sun was forced to take a stance against Jia, marking a significant shift in their relationship.
On the evening of September 21, LeTV officially announced that it had sent letters to Jia Yueting, urging him to continue fulfilling his loan commitments to the company. The move came as part of an effort to ensure that the controlling shareholder honored his previous promises to provide financial support to the listed entity.
LeTV also noted that its shares have been suspended since April 17, 2017. Given the recent freeze on Jia Yueting’s assets, there is now considerable uncertainty about whether he can meet his future obligations. This has raised concerns among investors and regulators alike.
In recent months, Jia Yueting has been traveling between Hong Kong and the United States, working on securing new financing for LeTV and addressing the company’s mounting debt. This includes both the non-listed and listed parts of the group. While some progress has been made in fundraising, Jia still faces challenges in fully resolving the funding issues. As a result, LeTV may only be able to monitor the situation rather than actively intervene at this stage.
Industry observers speculate that Sun Hongbin has finally turned against Jia Yueting. The question remains: what exactly did LeTV send to Jia?
As the founder of LeTV, Jia Yueting had long been under scrutiny for his commitment to reduce his equity holdings and lend the funds to the listed company. In the first half of 2017, LeTV faced severe liquidity issues, partly due to Jia’s personal debts and those of the non-listed entities. He failed to fulfill his promise to continue lending to the listed company as previously agreed.
To address this, LeTV's board recently sent a formal letter to Jia, reminding him of his obligations and requesting that he honor his commitments. According to official records, from 2015 to the present, Jia Yueting had pledged up to 4.7 billion yuan in loans to the listed company, with a total accumulated amount reaching 11.3 billion yuan.
Despite stepping down from all positions within LeTV, Jia remains the largest shareholder. According to LeTV’s 2017 semi-annual report, the company repaid loans of 2.6 million yuan to Jia Yueting and 430 million yuan to his sister, Jia Yuefang. These repayments sparked debate, as they were not supposed to be prioritized. Instead, Jia and his sister had promised to use their cash reserves to support LeTV without interest for at least five years.
The repayment of these loans early on led to heated discussions, and the regulatory authorities took notice. On September 12, the Shenzhen Stock Exchange issued a letter of concern, asking LeTV to clarify the timing, amount, and reasons behind Jia Yueting’s repayments. It also requested an explanation on whether Jia had violated any of his commitments.
On September 21, LeTV responded by stating that the loan arrangements were made in line with the company’s operational needs, ensuring proper timing and size of the funds. The company emphasized that it had sent letters to Jia Yueting to remind him of his ongoing commitments.
Sun Hongbin’s first confrontation with Jia Yueting
Sun Jia will no longer stand on the same side in the future.
After Jia Yueting left for the U.S., Sun Hongbin gained full control over LeTV. This time, under the supervision of regulatory bodies, LeTV asked Jia to continue fulfilling his loan commitments, pushing Sun Hongbin into direct opposition with Jia.
When the LeTV funding crisis first emerged, Sun Hongbin stepped in with 15 billion yuan to save Jia. Even when external media accused Jia of misusing company funds, Sun publicly supported him, saying, “There is no uncertainty. I support old Jia.â€
At a recent semi-annual meeting, Sun Hongbin expressed deep emotion, praising Jia’s entrepreneurial spirit and vowing, “I must make LeTV a successful company.†He also denied accusations that Jia had misappropriated company funds.
However, under pressure from the regulators, Sun Hongbin was forced to request that Jia Yueting continue to fulfill his loan commitments. According to insiders, this move was either a result of Sun’s own recognition of the need for accountability or a response to regulatory pressure.
Looking ahead, as LeTV continues to resolve its internal issues and separate the listed and non-listed systems, Sun Hongbin and Jia Yueting are unlikely to remain allies. Their paths, once aligned, are now diverging sharply.
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