Internet celebrity Luo Yonghao receives restriction from high-value consumption Published: 2019/11/4 0:35:52

Luo Yonghao Photos: VCG

Internet celebrity Luo Yonghao and his company Beijing Smartisan Technology were restricted from high-value consumption on Sunday because the company failed to fulfill the payment obligation within a specified period stated in a notice of execution, according to a Danyang court in East China’s Jiangsu Province.

The court restricted Beijing Smartisan Technology and Luo from consumption activities not necessary for life and work, including taking fist-class transportation, travel, immobility purchases and other high-value consumption.

"For the past 10 months, I struggled to pay my debts. It was difficult, but I insisted on not filing for liquidation. Meanwhile, creditors have a legitimate right to keep demanding their debts. However, my company and I failed to pay off the debt in time, therefore we were restricted from high-value consumption by the court. I will continue to work hard," Luo said on Sina Weibo following the court’s decision. 

The court in Danyang has listed the company and Luo Yonghao as dishonest people who have failed to fulfill court orders on September 24 because they refused to fulfill their obligations in the effective legal documents and violated the property report system.

The Danyang court put on record on September 4 that Jiangsu Chen Yang Electronics Co applied for a notice of execution based on contract disputes with Beijing Smartisan Technology.

The defendant, Beijing Smartisan Technology, shall make the payment of 3.7 million yuan ($525,762) to the plaintiff, Jiangsu Chen Yang Electronics Co, within 10 days after the effective date of the judgment.

Luo is at present the executive director of Beijing Smartisan Technology, a subsidiary of Smartisan Technology, a smartphone maker. Luo, the English teacher who turned entrepreneur used to be the legal representative of Beijing Smartisan Technology.

According to the credit China, a website containing the credit history of Chinese residents and firms in the China social credit system, Beijing Smartisan Technology is listed for breach of trust.

Luo recently revealed in an interaction with netizens on Sina Weibo that Smartisan Technology is still in his hands, but internet technology company ByteDance, owner of TikTok, bought Luo’s mobile phone brand.

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