LeEco Strikes Back: Is the Company Turning to Stock Trading to Repay Its Debts?

Once hailed as an internet giant and now burdened by massive debt, LeEco is once again dominating Weibo’s trending list—this time for announcing plans to invest 180 million yuan in what the public quickly labeled as “stock trading.”

Radar Finance found that this isn’t LeEco’s first such move this year. Including an earlier announcement in April involving 50 million yuan, the company now plans to deploy up to 230 million yuan of self-owned capital throughout the year across Beijing Stock Exchange (BSE) IPO subscriptions, secondary-market stock purchases, and treasury bond reverse repos.

LeEco emphasized that this capital comes from surplus funds and will not affect its operating liquidity or disrupt its core business.

Beyond these market investments, LeEco has also been highly active in broader strategic investments. Its recent deployment spans AI, film and television IP operations, intelligent robotics, and fast-food ventures.

But despite its eagerness to diversify revenue streams, LeEco’s financial performance remains grim. In the first three quarters of this year, the company generated only 115 million yuan in revenue, down 2.88% year-on-year. Net loss attributable to shareholders widened to 242 million yuan, increasing roughly 40% from last year.

Meanwhile, as of Q3, LeEco’s total liabilities reached an astonishing 23.009 billion yuan, with its debt-to-asset ratio soaring to 2667.83%.

Adding to the drama, on November 19, founder Jia Yueting announced the establishment of a second creditor trust to accelerate repayment efforts and pave the way for his return to China. Yet LeEco quickly issued a statement distancing itself, clarifying that it has no direct communication with Jia and cannot verify the authenticity of the trust or any related assets.

LeEco’s 180 Million Yuan Market Move: Total Annual Allocation Climbs to 230 Million

On December 2, LeEco published another investment plan, stating that to improve capital efficiency and secure additional returns, it will use self-owned funds to invest in BSE IPOs, secondary-market stocks, and treasury bond reverse repos.

The company noted that at any given time, its cumulative investment in these activities will not exceed 180 million yuan.

Of this, up to 30 million yuan (about 16.7%) will be allocated to secondary-market stock purchases, with strict parameters:
• At least 50% must be bank stocks
• At least 80% must be CSI 300 Index constituent stocks

The remaining 150 million yuan (about 83.3%) will be used for BSE IPO subscriptions and treasury reverse repos.

Funds may be recycled: any realized net gains may be reinvested without counting toward the capped amount. LeEco highlighted that these investments do not constitute private fund management and do not alter its core business orientation.

This marks the company’s second such investment notice this year. In April, LeEco announced a plan to invest up to 50 million yuan under nearly identical categories.

Once the new announcement surfaced, Weibo exploded with debate over “LeEco, with 23.8 billion yuan in debt, planning to spend 180 million yuan on stocks.”

In response, LeEco argued the topic had been misunderstood. The company stressed that 150 million yuan is earmarked for “risk-free” investments, specifically treasury bond reverse repos and BSE IPO subscriptions.

The company explained that treasury repos carry no risk and yield far higher returns than ordinary bank deposits. As for BSE IPOs, data from 2025 shows that all 25 IPOs listed so far have been profitable when sold on listing day. “It appears to be a guaranteed-return activity,” LeEco noted.

Racing to Build New Growth Engines: LeEco’s Recent Investment Footprint

Beyond financial investments, LeEco has been making bold moves into emerging industries.

In April, the company invested in Hainan Mangu Network, owner of AI products such as AI Assistant, AI Translator, and AI Scanner.

Later that month, LeEco announced an ambitious three-year investment blueprint—up to 100 million yuan—to expand into IP operations and intelligent robotics, signaling its urgent need to rebuild a sustainable revenue curve.

On the IP side, LeEco aims to accelerate monetization by expanding its library. “Empresses in the Palace” had already partnered with over 50 brands, and LeEco plans to develop additional IPs from its content library while incubating new projects.

On the robotics front, LeEco intends to enter the smart healthcare and rehabilitation robotics sector through in-house development and strategic investments. In November, this plan materialized when its subsidiary signed a convertible-loan agreement to provide 20 million yuan to Beijing Mengtebo Intelligent Robotics Technology.

LeEco believes robotics presents vast market potential and provides a promising path to diversify operations and reduce risk.

A Costly Misstep: LeEco’s Fast-Food Investment Falters

LeEco also ventured into the fast-food business via Beijing Wangdao Burger, a Burger King franchisee, committing up to 100 million yuan in financial support over three years.

But the project significantly underperformed. Store count dropped from six to three, and annual revenue fell from 15 million yuan to roughly 10 million. The company now faces substantial repayment risk on its earlier 20 million yuan loan.

Because of this deterioration, LeEco terminated the original agreement, retrieved the loan principal, and acquired 10 million yuan of unfulfilled registered capital in Wangdao Burger for only 1 yuan.

After reassessment, LeEco recorded 6.8 million yuan in bad-debt provisions for 2024.

When questioned again about why LeEco invests instead of repaying debts, the company responded that its liquidity is extremely limited. Even if it used all available funds beyond basic operational needs, its debt repayment rate would not exceed 1.5%—rendering repayment symbolic at best.

“The priority is to keep the company alive,” LeEco stated. “If the company collapses, communication channels with creditors, investors, and users disappear as well.”

23 Billion Yuan in Debt: LeEco and Jia Yueting Face Rising Pressure

Behind LeEco’s frantic diversification lies a company deeply entrenched in financial hardship. Revenues peaked above 20 billion yuan in 2016, but by 2024 had fallen to a mere 188 million yuan—less than 1% of its peak.

LeEco’s net losses have persisted for eight consecutive years since 2017, totaling more than 36 billion yuan.

Nothing has improved in 2025. In the first three quarters, revenue contracted again while losses widened sharply. Total liabilities now surpass 23 billion yuan, pushing its financial leverage to extreme levels.

Jia Yueting, once the charismatic face of LeEco, has repeatedly vowed to repay debts and return to China. His latest announcement touted a new creditor trust backed by equity from Faraday Future and AIXC.

Yet LeEco publicly stated it has no direct communication with Jia and cannot verify any details of the trust.

As of 2024 year-end, LeEco’s claims against Jia-controlled entities totaled 4.779 billion yuan, while debts jointly borne with Jia exceeded 2 billion yuan, along with an additional 2 billion yuan in repurchase obligations.

With LeEco dabbling in stock investments and new industries, and Jia promoting a fresh repayment structure, the biggest question remains:

Can LeEco truly unlock new revenue pathways—and will Jia Yueting’s debt plan ultimately bring him home?