Zhang Zhao. Photo: VCG
The chairman of an entertainment unit under troubled tech empire LeEco has resigned, prompting speculation about possible successors.
Le Chuang Entertainment, formerly known as Le Vision Pictures, announced Monday that chairman and CEO Zhang Zhao would step down for “personal reasons.” The company has yet to announce a replacement, although multiple Chinese media outlets reported that Sun Zheyi, son of Le Chuang shareholder Sunac’s head Sun Hongbin, would replace Zhang.
Hong Kong-listed property giant Sunac is Le Chuang’s biggest shareholder, and Sun Zheyi is currently president of Sunac’s own culture and entertainment unit. Zhang was a co-founder of Le Vision Pictures, which rebranded as Le Chuang in 2018.
LeEco was once the darling of tech investors and did business in a range of industries including smartphones, electric vehicles, and entertainment. But by 2016, the company faced a cash shortage after spending billions of yuan on breakneck expansion.
Sunac has spent over $2 billion on rescuing LeEco and its divisions. While Sunac has admitted the investment was a “failure,” it has still showed strong interest in raising capital for Le Chuang. According to Sunac, apart from property development, culture-related projects such as entertainment and tourism remain key parts of its business.
Read more: How LeEco Fell From Glory
Contact reporter Zhao Runhua (email@example.com)