Coo8 CEO Resigns
Beijing Times, 3/06/12
Wang Zhiquan, CEO of Gome's (0493.HK) e-commerce subsidiary Kuba Technology (Coo8), has confirmed he will resign as CEO but, as Coo8's second largest shareholder, will remain on the board. Wang's duties will be assumed by Shenyang Gome's general manager Ding Huadong.
Regarding Wang's sudden departure, an industry source claims that Wang has clashed with Gome senior management from the outset, with divisions appearing at the end of last year. According to the source, the biggest difference between Wang and Gome management was over Coo8's 2011 loss of RMB 100 mln - an unimaginable and unacceptable loss from Gome's perspective as a traditional retailer, but standard practice across the e-commerce industry which racks up losses in order to drive sales growth. Furthermore, although Gome's 80% stake makes it the clear majority shareholder, over a year after the acquisition Wang continued to run Coo8 relatively independently, which did not fit with Gome's company practices.
Keywords: HR hardware Wang Zhiquan e-commerce Internet Gome 0493.HK Kuba consumer electronics home appliances retail Coo8.com
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