The Yanran Angel Children’s Hospital faces a shutdown crisis due to unpaid rent of 26 million yuan. The landlord claims to have supported the public welfare cause for the past decade by charging half the market rate, stating that the lease renewal merely represents a “return to market price.” The hospital, however, emphasizes its inability to bear the pressure of doubled rent. The dispute highlights the survival challenges faced by public welfare institutions under commercial rules.
⚖️ 1. The Core of the Dispute: Rent Controversy and Legal Judgment
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Key Points of the Rent Dispute
- Landlord’s Position: The initial ten-year lease starting in 2010 was at 50% of the market rate (annual rent approximately 5 million…
Following the video by Li Yapeng, total online donations exceeded 14 million yuan, which were primarily directed to the Yanran Angel Fund. The Yanran Angel Children’s Hospital and the Yanran Angel Fund are two separate entities, and the hospital does not have public fundraising qualifications. Donations to the Yanran Angel Fund must be used for designated purposes, specifically for designated medical aid. They cannot be used to repay the hospital’s rent, utilities, administrative expenses, or other non-public welfare debts. One might ask, how were previous rent payments resolved? Legal avenues include: 1) The hospital provides some self-paid medical services, which can generate a portion of its own operating income. 2) Li Yapeng has repeatedly stated publicly that he has continuously invested personal funds over the past decade to maintain the hospital’s operations, demonstrating his commitment. 3) Rent may also have been raised through loans from society or capital injections from shareholders. Therefore, even if the public wishes to “save the hospital” out of goodwill, legally, charitable funds cannot be used to settle rent debts. The hospital’s current predicament: The effective judgment’s enforcement notice was dated November 4, 2025. After a 30-day period expires, the court can procedurally: 1) initiate or continue compulsory eviction enforcement, and 2) hold the hospital and the jointly liable party, Li Yapeng, responsible for enforcement costs, eviction expenses, etc. It is now January 2026, and the judgment has not yet been enforced. It is possible the landlord has not pursued compulsory enforcement and both parties are still negotiating. The landlord should not be overly criticized. According to reports, from 2010 to 2019, the landlord, in support of public welfare, leased the property to Yanran Angel Children’s Hospital at approximately half the market rate for a 10-year contract. Starting November 2019, after the contract expired, the lease was renewed at the normal market rate, resulting in a significant apparent rent increase. During the pandemic from 2020 to 2023, the landlord provided phased rent reductions, but the overall basis remained the market rate. From 2022 to 2026, the hospital failed to pay the full rent after renewal, leading to accumulating arrears and ultimately forming a debt of approximately 26 million yuan in rent and related fees. On one side is a hospital that saves children, on the other is a landlord who has made concessions for over a decade. It is hoped both parties can sit down and negotiate.
