SHARES in Leshi Internet Information & Technology Corp. Beijing slumped 10 percent Friday after its chairman resigned, fanning fears he would no longer play a white knight role for the embattled firm.

Sun Hongbin took on the job only eight months ago after making a US$2.2 billion investment by his property firm Sunac China Holdings, and had been seen as the main backer for the crumbling LeEco conglomerate, of which Shenzhen-listed Leshi is the main listed vehicle.

But financial woes at LeEco, which once aspired to be both China’s Netflix and Tesla, have only deepened with founder Jia Yueting last year defying court orders to return to China from the United States to pay debt owed by various LeEco units.

Sun’s resignation were presaged by signs that he was losing confidence in Leshi. He told a Leshi shareholder briefing in February that he had underestimated the amount of Leshi’s non-receivables.

Sun also asked to leave Leshi’s board and quit all roles, according to a filing by the video streaming company Wednesday, which attributed the decision to a “work adjustment.” General manager Liu Shuqing will be acting chairwoman until the board picks a replacement.

Leshi said in separate filings Thursday it has no plans to bring in external investors but added that has confirmed with shareholders who hold more than 5 percent that they do not have plans to sell.

As trade in its shares resumed Friday after being halted Wednesday afternoon, the stock fell by its daily limit of 10 percent to give it a market value of just US$3.8 billion, far below its peak of US$24 billion in 2015.

Leshi last month reported a preliminary net loss of 11.6 billion yuan (US$1.8 billion) for 2017, more than five times its combined profits since its listing in 2010. (SD-Agencies)