Zhang Jindong, billionaire founder of Suning.com steps down as chairman after China-led bailout

The founder of Chinese retail giant Suning.com has stepped down as chairman following the completion of a US$1.4 billion bailout

Suning.com recently revealed plans to buy assets from a private equity fund to revive the group, after forays into football clubs and other businesses drained its cash

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Zhang Jindong, founder of Chinese retail giant Suning.com, has stepped down as its chairman. Photo: AFP

Published: 1:28pm, 13 Jul 2021Updated: 3:43pm, 13 Jul 2021

Zhang Jindong, the billionaire founder of Chinese retail giant Suning.com, has stepped down as its chairman following the completion of a US$1.4 billion bailout from a consortium led by the Jiangsu government and Chinese tech giants.

The company announced his resignation in a filing to the Shenzhen stock exchange on Monday. Zhang, 58, will become honorary chairman, guiding the company’s future development, Suning.com said in a separate filing. He will no longer hold any duties or rights as a board member, but will remain as the legal representative until a replacement is appointed.

Suning.com announced on Monday that Zhang, Suning Group and Suning Appliance Group had completed the transfer of 1.58 billion shares of the embattled retail firm, a 16.96 per cent stake, to a state-backed fund.

Investors in the fund include the Nanjing municipal government, e-commerce giant Alibaba Group Holding, home appliance makers Haier Group and Midea Group, electronics company TCL Technology and Chinese smartphone maker Xiaomi.

The deal, which was announced last week, was valued at about US$1.4 billion. After the share transfer, Suning.com would no longer have a controlling shareholder or actual controller, the company had said.

Zhang’s stake in Suning.com fell to 17.62 per cent after the deal was completed, down from 20.96 per cent, according to the filing.