Leshi chairman Hongbin resigns after just eight months in office

Sunac chairman Sun Hongbin
Sun Hongbin, chairman and chief executive officer of Sunac China Holdings Ltd., listens during a news conference in Hong Kong, China, on Tuesday, March 24, 2015. Photographer: Jerome Favre/Bloomberg via Getty Images

The chairman of Chinese video-streaming firm Leshi Internet Information and Technology has resigned, the company said late on Wednesday, adding to the problems of its embattled parent LeEco.

After only eight months as chairman, Sun Hongbin, also chairman of Leshi‘s second largest shareholder Sunac China Holdings Ltd, has decided to leave, Leshi said in a filing to the Shenzhen stock exchange.

Sun will also leave the board of Leshi.

Debt-laden, cash-strapped Leshi received a $2.2 billion investment from Sunac China in January 2017 and Sun was elected chairman in July.

Leshi‘s parent LeEco was once China’s Netflix-to-Tesla contender, but ran into a cash crunch in late 2016 after expanding too fast.

In Wednesday’s announcement, Leshi said its general manager Liu Shuqing would be acting chairwoman before the board picked Sun’s replacement.

Leshi shares were suspended in afternoon trade, after rising sharply earlier this week. The stock has been volatile since resuming trading on Jan. 24 after a nine-month suspension.