Chinese tech billionaire Richard Liu gives up front office roles and direct ownership at JD, but is he still in control?
- The prominent tech founder currently retains executive roles at 33 companies, compared with the 333 executive roles he once held
- While Liu is no longer CEO at JD.com, he still owns 76 per cent of aggregate voting power at the business empire he founded in 1998
One of China’s most prominent tech tycoons is relinquishing direct ownership and executive roles in various entities under the business empire he founded nearly a quarter century ago, triggering questions about his next steps after the abrupt end of a lengthy legal battle in the US involving a rape allegation.
Richard Liu Qiangdong, the billionaire founder of JD.com and the world’s 155th richest man with an estimated net worth of US$10.8 billion, has surrendered his 45 per cent stakes in each of four entities owned by the company’s logistics, healthcare and investment subsidiaries since September, recent corporate filings showed.
According to the filings, the equities were transferred to Miao Qin, vice-president and head of JD’s life and service business division, for “administration efficiency purpose” because Liu, a non-executive director, was no longer involved in the day-to-day operations of JD, which made it difficult to arrange signing of corporate documents.
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The latest moves came after Liu, 49, handed over his CEO role in April to long-time confidant and company veteran Xu Lei, in one of the entrepreneur’s most high-profile steps to remove himself from the daily grind at JD.
“Liu is mostly overseas these days and his absence in China could make administrative trivia, such as document signing, a hassle,” said Li Chengdong, founder and chief analyst at Beijing-based tech consultancy Dolphin, adding that JD, as an established conglomerate, can run smoothly without Liu’s constant presence.
JD did not respond to a request for comment on this article.
