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Dec. 27 (NBD) -- Tianjin Jiarui Huixin Corporate Management Company controlled by Sunac China Holdings Limited will raise its holdings of Le Vision Pictures Co Ltd (LeVP), subsidiary of LeEco, to 40.75 percent to become the film company's largest shareholder, according to a statement made Monday by Leshi Internet Information & Technology Corp Beijing (hereafter referred to as "Leshi Internet Information & Technology). 

Upon the completion of the new deal, Sun Hongbin, founder and chairman of Sunac China Holdings, will be the new chairman of LeVP.

Sunac first made a strategic investment of 15.04 billion yuan (2.3 billion U.S. dollars) in Leshi Internet Information & Technology, Leshi Zhixin Electronic Technology and LeVP in January this year, including the purchase of a 15 percent stake in LeVP for 1.05 billion yuan (160.5 million U.S. dollars). 

According to an announcement released by Leshi Internet Information & Technology on 7th July, Tianjin Jiarui has increased its stake in LeVP from 15 percent to 21 percent.

The announcement also said that Leshi Holding was still the largest shareholder of the film company, with a 21.81 percent stake.

However, the 21.80 percent stake that Leshi Holding holds in LeVP has been pledged to Sunac Real Estate Group Co., Ltd., with some of them pledged in April 2017 for a working capital of 1.12 billion yuan (171.2 million U.S. dollars), and also has been frozen by judicatory. 

The suspension of the shares in Leshi Internet Information & Technology has last for more than 8 months since 17th April. Zhang Zhao, chairman of LeVP, told NBD in an exclusive interview that the company is promoting a new round of financing.

With regard to the new investment, Sun Hongbin said in June that huge consumption potential can be seen in China's entertainment and culture industry and LeVP is of great value for long-term investment.

According to Sun, LeVP, which has its own teams, resources, and great business model and intellectual property, will be much more valuable if the company produces satisfying products.

In the new picture outlined by Sunac, LeVP is expected to play a crucial role in the revival of LeEco by providing quality resouces.

Email: zhanglingxiao@nbd.com.cn