LeEco’s problems lie with management, says Sun Hongbin
But the Sunac China chairman remains upbeat on investing in the firm based on its broad potential in culture and entertainment
Investing in LeEco remains logical, but the biggest problem with the company lies in its management, said Sun Hongbin, chairman of Sunac China, which had earlier invested in the company.
“Many entrepreneurs do especially well in good times, but do nothing when facing challenges.,” Sun told the China Securities Journal at a summit in Beijing. “Jia Yunting is a typical example, he completely lost his balance.”
However, Sun still believes that it is logical to invest in LeEco. “My logic behind investing in LeEco is to invest in culture and entertainment,” he said.
“The big-screen smart TV of LeEco is a very important cultural and entertainment scene that I think will take a big share in China’s home entertainment. The product and service will be more and more valuable in the future.”
With regard to Sunac China’s investment in LeEco, Sun said: “LeEco has just started, and I have not started to work yet. If you say that the investment failed, I would say it’s too early for that comment.”
Sun’s comments followed LeEco CEO Liang Jun’s resignation five months after he took the position, as well as the company’s latest earnings report showing a 435.02% decrease in net profit.