(Chinese Version)

　　LeEco’s listed company, Leshi Internet Information & Technology Corp, has had many embarrassing moments in the Chinese A-share market. At first, the company miraculously became listed despite having major issues, and then survived the anti-corruption wave. Later Leshi became one of the most interesting shares in China powered by Jia Yueting’s ecosystem concept. It's fair to say that Leshi has never failed to surprise us.

　　When LeEco was having major cash bleed, Sunac China’s board chair Sun Hongbin poured in ￥15 billion and helped the Internet company out. However, it seems LeEco has got into another embarrassing situation.

　　It’s incredible that as a listed company, Leshi didn’t announce its new CEO itself. Such major management change did not appear on Leshi bulletin either, but instead was revealed at its second biggest shareholder Sunac China’s press conference. Several news outlets have reported that Sun Hongbin had announced at Sunac China’s press conference this month that the president of Leshizhixin (non-listed company) has been appointed as the new CEO of Leshi, the listed company. After researching on relevant requirements on listed companies in China, TMTPost learned that the law regulates that companies must make public announcements when having major management shift or personnel change that would have a profound impact on operation. However, Leshi did not follow the requirement and made an announcement.

　　Amazingly, many news on Leshi's major strategy adjustments were not published by Leshi itself but Sunac China. Sun Hongbin had revealed LeEco’s strategy adjustments and future plans in details for several times at Sunac China’s press conference: changes of the independent board of the listed company; the retrenchment strategy of the listed company; the management shift of the listed company; the responsibility change of the listed company’s actual holder etc.

　　“In the future, LeEco will only have two main parts, which are Leshi and LeSEE. The development of LeSEE is up to Jia Yueting. Jia will focus on the car business. Leshi has me,” Sun said at Sunac China’s press conference. When this statement was made, Jia was still the official board chair and CEO of Leshi. It’s incredible that it was Sun Hongbin who announced the appointment of Liang Jun.

　　Perhaps it’s not uncommon to see such phenomenon in the Chinese A-share market as there is a lack of supervision. But if similar things take place in a mature and developed market, the result will be disastrous. But the embarrassment did happen, and the regulator of the A-share market wasn't there to fix it.

　　Make no mistake. Sun Hongbin is just as aggressive as Jia Yueting. It’s apparent to the public that LeEco is having internal leadership conflict.

　　Recently, Leshizhixin’s president Liang Jun announced that LeTV’s sales department would return to Leshizhixin starting from May 18th.

　　This move is the complete opposite of Jia Yueting’s structural adjustment that was set to handle the cash plunge six months ago. In response to the cash plunge, Jia Yueting set up the LeEco sales and service platform to operate the online sales of LeEco’s products. According to Jia’s plan, LePar would be responsible for the business of offline stores related to the O2O category. Zhang Zhiwei, former vice president of Leshizhixin would be in charge. Tencent Technology reported that after Sun Hongbin had invested in LeEco, it seemed only Liang Jun won over Sun’s trust.

　　Liang Jun

　　Who exactly is Liang Jun?

　　Besides strong business capability, Liang Jun is also interesting for his past experience at Lenovo. Before joining Leshi on January 30th 2012, Liang Jun had worked at Lenovo for seven years. Liang started to work for Lenovo Group in April 1995. He had been Lenovo’s general manager of the product chain management department, the server business department, the marketing department of Lenovo’s mobile telecom tech subsidiary, and the vice president of Lenovo’s smartphone R&D department.

　　Graduating from Tsinghua University with a master degree, Sun Hongbin joined Lenovo in 1988. In 1990, Lenovo made an exception and promoted him to the manager role of Lenovo’s corporate development department, mainly in charge of the Chinese character card and microcomputer distribution business. However, due to economic problems, he was sent to prison by Liu Chuanzhi himself. Sun was sentenced to five years in prison and later got a 14-months reduce on penalty.

　　On March 27th 1994, Sun Hongbin finished his penalty and left the prison. The prison time didn’t break Sun down. He subsequently founded Sunac China and once again reminded the public of his genius operation mind and extraordinary execution ability. With ￥500,000 from Liu Chuanzhi, Sun founded SUNCO. Sunac China was originally a high-end real estate project of Sun Hongbin in 2003.