(Yicai Global) Jan. 23 -- Sun Hongbin-led Leshi Internet Information and Technology Corp. has reiterated that Leshi Holdings Beijing Co. and its affiliates, run by Jia Yueting, owe it CNY7.5 billion (USD1.2 billion) after the debtor tried to play down the amount of money owed.

Beijing-based Leshi Internet [SHE:300104] made a statement yesterday to confirm the scale of the debt, just hours after Leshi Holdings, which heads the LeEco brand, rebutted earlier claims and said the actual figure was closer to CNY6 billion.

Leshi Internet, the listed arm of the byzantine LeEco group, released a corporate stock warning on Jan. 19, which attributed tight cash flow, unpayable arrears and poor sales to Jia. That triggered the response from Leshi Holdings.

Jia and his companies have been embroiled in controversy since LeEco approached rock bottom last year, amassing debts of over CNY20 billion. They have been on the receiving end of several lawsuits after missing repayments, and Chinese courts have labeled Jia a "dishonest debtor" for not repaying loans he can afford to.

As of Nov. 30, more than 50 affiliates controlled by Jia owed Leshi Internet a host of receivables, the listed arm said. Most of the debt breaks down as follows:

Leshi Intelligent Terminal Science and Technology Co. (CNY2.6 billion)
Leshi Mobile Intelligent Information Technology Beijing Co. (CNY993 million)
Leshi E-Commerce Beijing Co. (CNY566 million)
Leshi Holdings Beijing Co. (CNY486 million)
Leshi Mobile E-Commerce Beijing Co. (CNY441 million)

Sun's Regret

Sun Hongbin, chairman of Sunac China Holdings Ltd., has described his CNY15 billion bail-out of the LeEco group last January as his only regret in life. He and Jia are both businessman from the northern province of Shanxi.

Sun took the reins at Leshi Internet as Sunac subsidiary Tianjin Jiarui Huixin Corporate Management Co. was its second-largest shareholder. Jia, its biggest shareholder, was relieved of his duties at Leshi Internet in July. Courts froze his assets in the company and he lost control of the firm he founded.

Jia said early this month that he has entrusted his wife and brother with handling, as he termed it, the "debt crisis" at Leshi Internet. It was his first public statement after the Beijing branch of the securities watchdog ordered him back to China before Dec. 31. Jia left for the US in July after stepping down as chairman of Leshi Internet.

The LeEco group has sold some assets to repay part of its debts and will keep in touch with banks in an effort to unfreeze other assets to make further repayments, Gan Wei, Jia's actress spouse, said through social media on Jan. 7.

Suppliers of Leshi Mobile appealed on Jan. 10 to Gan and Jia Yuemin, Jia Yueting's brother, to settle all of its debt. Many are going through a difficult time and some have gone out of business, they said in a letter to the pair. Almost every one has mortgaged their home to pay bills and is keeping operations going on very tight money, they added.