Ofo Affiliate Fined RMB13.41 Million by Court

(Source: The Straits Times)

On June 23, Tianyancha App showed that Dongxia Datong Company was listed as a judgment debtor by the Haidian District People’s Court of Beijing, obliging it to pay about 13.416 million yuan in fines. The reason behind it is the dispute between Dongxia Datong Company and Jiawei New Energy Co., Ltd.

Dongxia Datong (Beijing) Management Consulting Co., Ltd. was established in October 2016 with a considerable fund of $1.5 billion. However, up to now, the company has been listed as a judgment debtor 46 times and has suffered from 258 consumption restriction orders.

On June 10, Pandaily reported that the Haidian People’s Court in Beijing investigated the company’s savings, real estate, and other businesses after a lawsuit and found no assets available for the execution. The court said that the company would face consumption restrictions until the money is available.

SEE ALSO: Company Behind Fallen Bike-Sharing Unicorn Ofo Found to Lack Executable Funds

This year alone, Chen Zhengjiang has received 45 consumption restriction orders. Daiwei, the founder of the company, has been subject to that sort of order 39 times.

Founded in 2014, Ofo pioneered an easy-to-use bike-sharing model to solve the problem of urban transportation. Coupled with a new business model, its concept of “Internet Plus” has attracted much capital to the company’s coffers. Over four years, Ofo has secured 11 rounds of financing, with investors including Ant Financial, Alibaba, Didi Chuxing, Xiaomi.

Mobike has 232 million registered users worldwide, and its daily cycling orders has up to 30 million. With the revenue of RMB 6.044 billion in 2020, Hello Travel submitted its IPO application for the first time on April 24th. Apart from improving the smoothness of bicycles, various bike-sharing platforms, such as Lumai, Qingju Bicycle, Mebike, Pinecone Travel, have also introduced the electric-vehicles sharing model.

Ofo, the pioneer of the bike-sharing model, has long lagged behind all competitors. The former “little yellow bike” has gradually been replaced by the “little blue one” of Hello Travel.

However, the most concerned issue of deposit refund remains. According to Chinese media outlets, since December 7, 2018, when hundreds of users went to Ofo Beijing headquarters to refund the deposit, more than 13 million people are still queuing to get their money back. If keeping the current rate of refunding, where less than 100 people’s pocket is refilled every day, it will take more than 500 years to complete the full refund.

Many netizens have posted the number of people ahead of them waiting for the refund on Weibo. One said: “In December 2018, there were 6.08 million people ahead of me waiting for the refund, but today there are 3.83 million. It took two and a half years for me to surpass 2.26 million ‘victims’ of Ofo’s bad management.” Another netizen complained: “I guess I may get my refund back after Ofo pays its fine off someday.”