Video-sharing mobile app Kuaishou's CEO Su Hua has left the position and replaced by co-founder Cheng Yixiao. With the move, Su will devote more time to formulating the company's long-term strategies and exploring new initiatives.
Kuaishou said in a statement on 29 October that Su ceased to serve as CEO of the company but he will continue serving as the chairman of the board, an executive director and a member of the remuneration committee. Kuaishou said Su had confirmed that he has no disagreement with the board and there are no other matters in relation to his resignation that need to be brought to the attention of the shareholders of the Company
The change of Su’s role will allow him to devote more time to formulating the group’s long-term strategies and exploring new initiatives. Meanwhile, Cheng took up the position of CEO on 29 October, alongside his roles of executive director and chief product officer. In his new position, Cheng leads the day-to-day operations and business development of the group, and report to Su, who is also the chairman of the board.
Kuaishou said Su will be able to focus on the overall strategic planning and development, whereas Cheng would be able to specialise in overseeing the management of the business and operations of the group, which will be beneficial to the company's overall business development.
Previously, Kuaishou was handed a fine by the Chinese government, along with Douyin, for publishing a micro load ad that attracted the audience to excessive consumption, according to multiple reports such as the South China Morning Post. Both companies were fined ¥200,000 (US$ 31,287) by the State Administration for Market Regulation (SAMR) in the Haidian district of Beijing. The related ad violated China’s advertising law which bans campaigns regarded by authorities as going against a good social climate or disturbing the public order.
The ad is produced by JD Technology, the financial technology arm of eCommerce giant JD.com. According to SCMP's report, it is about a man travelling on a plane with his mother. He is concerned about his mother's wellbeing as she is airsick-prone, and takes out an instant loan via a JD.com app to get the money before upgrading her to a cabin seat. JD technology apologised for the ad in December last year and said it was not sensitive enough to people who did not earn a lot of money. In July, JD.com was given a ¥400,000 fine for the commercial.
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