Loss-making Chinese smartphone maker Coolpad removes CEO days after CES trade show

Chinese smartphone maker Coolpad Group terminated the services of its chief executive, Jiang Chao, just days after the executive gave media interviews at the CES trade show laying out his turnaround plan.

The board of the Hong Kong-listed company met on January 11 and passed a resolution to remove Jiang from all his duties in the company and its subsidiaries, including his positions as chief executive director, vice-chairman, chief executive and board committee roles, according to a filing to the stock exchange.

No reason was given in the filing for the termination. The company appointed Ma Fei as chief financial officer, without saying who will take over as chief executive. Neither Jiang nor Coolpad immediately responded to texted requests for comment.

Coolpad was once a leading player in the Chinese domestic market before intense competition forced it to seek greener pastures elsewhere. That turned out to be the US, where the Shenzhen-based company now derives about 90 per cent of its revenue.

Coolpad will continue to expand in both the North and South American markets, as well as some European countries, Jiang Chao said in an interview in Las Vegas on January 9. China remains off the road map because of rampant intellectual property infringement and excessive marketing, he said.

It is unclear whether Jiang knew of his impending termination by the company at the time of the interview. With the latest development, it is also not clear whether Coolpad will stick with Jiang’s plan or change strategy.