On the afternoon of August 10, LeRong Super TV suddenly released an open letter disclosing the quality problems of Nanjing Zhongdian Panda Home Appliance Co., Ltd. for its OEM TVs, and stressed that it had to set aside its face and publicly expose the situation when it could not negotiate amicably. According to LeEco, Le Rongzhixin entered into a super TV foundry cooperation with Nanjing Panda in early 2019 and has delivered 390,000 units for 430 million yuan as of March 2022.
Since July 2020, LeTV has been receiving feedback from users that the Y43, F43 and F55 models of TVs OEMed by Nanjing Panda frequently have problems such as horizontal lines, vertical lines and liquid leakage on the screen after about six months of use, especially the defective rate of the first two 43-inch models is close to 20%, which is much higher than the industry average of 2% and also seriously exceeds the standard of 1.8% agreed by both parties in the quality agreement, constituting Quality accident.
In August 2020, the screen analysis report provided by Nanjing Panda and the market tracking results of both parties confirmed that the cause of the above quality accident was that the quality of the main material LCD screen was not up to standard, and the LCD screen was fully purchased by Nanjing Panda, according to the contract, Nanjing Panda should provide free replacement screen materials, timely rectification, bear all after-sales costs and compensate for losses.
However, according to LeTV, this quality incident did not let Nanjing Panda take a warning, subsequent product problems still exist, the failure rate of some models is still high, resulting in “user complaints like snowflakes, requesting repair, return calls overwhelming, repair master ran off his legs.
In August 2020, LeTV has been advancing the related after-sales costs, so far the number of screen replacement reached 11,590 units, the number of replacement machines amounted to 2,160 units, is expected to follow the screen replacement 6,300 units.
The two years of “The Legend of Zhentai” brought income to LeTV, all by Nanjing “Panda” has a history of eighty or ninety years old brand as bamboo to eat.
The company disclosed that since 2020, it has been fantasizing that the differences between the two sides could be properly resolved through friendly negotiations, but to this day, Nanjing Panda Dongguan branch is nearing closure, but still pushing back on solving the after-sales problem, refusing to pay for the advancement of costs, refusing to negotiate a solution.
Nanjing Panda also unilaterally proposed to no longer provide replacement materials for the 55-inch accident TV and no longer assume any after-sales responsibility on the grounds that there were no materials available.
In addition, Nanjing Panda Dongguan Branch has undertaken 97% of LeTV’s Super TV orders, but has never officially notified LeTV of its imminent closure, even without the knowledge of LeTV’s personnel in the factory.
Finally, LeTV once again strongly requested Nanjing Zhongdian Panda to face up to its own problems, effectively assume after-sales responsibilities, fulfill after-sales obligations, and protect the legitimate rights and interests of LeTV TV users.
