(Yicai Global) May 23 -- Sun Hongbin, chairman of Sunac China Holdings Ltd. [HKG:1918], which invested CNY15 billion (USD2.2 billion) in LeEco at the start of the year, has reiterated he has no intention of seeking control of the company.
Sunac will not change its investment strategy for LeEco, seek control of the conglomerate or buy shares in Le Supercar, the group's auto division, Sun said at a Sunac shareholders meeting yesterday.
The company is still optimistic about LeEco's TV, film and other businesses, he added, including large- and small-screen TVs. It is also positive about the forward-thinking strategic vision of Jia Yueting, founder of the LeEco conglomerate, Sun continued, adding that Jia giving up equity in the firm for free showed he is an honest and trustworthy person
LeEco represents the future direction of home entertainment development, he added, and it fits the course of consumption upgrading. Sun believes the entertainment market has solid growth potential.
Sun will not completely let go of his control in the group, he said. "LeEco is vital to both Jia and I. He needs to control the firm, and of course, I have to control some parts too. However, I will only control the structure and management system, nothing else. The promotion of LeEco's management and decision-making committees was part of the contract. I feel improving corporate governance will increase the group's value, which benefits both of us."
Sunac has no plans to further invest in LeEco, Sun said, reiterating that the firm is a real estate developer, not an investment company.
On May 21, Jia Yueting resigned as general manager of the group's listed unit, Leshi Internet Information & Technology Corp. Beijing [SHE:300104], but decided to stay on as chairman. Sunac invested in LeEco because of its unique advantages, he said, and told reporters he did not have to say whether the company was controlled by himself or Sun.
Earlier this year, Sunac injected a total of CNY15 billion into LeEco divisions, including CNY6 billion for an 8.61 percent stake in its listed arm, CNY8 billion for a 33.5 percent stake in Leshi Zhixin Electronic Technology (Tianjin) Co., the group's TV maker, and CNY1 billion for a 15 percent stake in Le Vision Pictures, LeEco's film production and distribution firm.