Foreign media said that LeTV negotiated to sell Shimao Gongsan, which just bought last year for US$420 million

Reuters quoted sources as saying that LeEco was discussing selling a property in central Beijing. LeEco purchased the property last year for US$420 million. The news shows that LeEco, which has tight cash flow, is taking more measures to raise funds.

Reuters quoted sources as saying that LeEco was discussing selling a property in central Beijing. LeEco purchased the property last year for US$420 million. The news shows that LeEco, which has tight cash flow, is taking more measures to raise funds.

Two sources said LeEco plans to sell all or most of its retail properties in Shimao Gongsan in eastern Beijing. LeEco's negotiations with potential investors have been going on for months.

Reuters has not yet been able to determine the identity of potential investors or possible transaction prices. However, a source said that negotiations are currently in an advanced stage and the selling price is expected to be higher than LeEco's initial purchase price.

LeTV has a Netflix video platform at its core and is known as one of the boldest technology companies in China. The company plans to expand into the U.S. market and challenge Tesla in electric vehicles. However, rapid expansion has strained LeEco's cash flow. LeEco founder and CEO Jia Yueting admitted in November last year that LeEco was facing "big company disease."

Currently, LeEco is controlling spending. The company is considering selling properties in the United States and this month abandoned a $2 billion acquisition of U.S. television maker Vizio.

Sources said that by withdrawing funds from its two companies, LeEco plans to sell a 50,000-square-meter property in Sanlitun, Beijing. The two companies are Beijing Fortune Times Real Estate Co., Ltd. and Beijing Baiding New Century Business Management Co., Ltd. In May last year, LeEco acquired the two companies from Shimao Property for 2.92 billion yuan (approximately US$424.15 million).

Sources said the planned deal would bring money to LeEco and allow the company to refocus on its core businesses, particularly smartphones, televisions, LeEco sports and automotive businesses.

LeEco declined to comment on this news.

Jia Yueting previously stated that LeTV will pay more attention to listed company LeTV and inject other businesses into listed companies.

Sources said the plan to sell Beijing properties is "part of a rationalization of core business." LeEco's investments cover copyright for sports events, easy access to online ride-hailing platforms, and business units focusing on smartphones, online entertainment and home appliances.

Earlier this week, Yizhi founder Zhou Hang said that he had stepped down from Yizhi's day-to-day management and said that LeTV, which holds a 70% stake in Yizhi,"embezzled" 1.3 billion yuan of funds belonging to Yizhi to repay its own debt. LeTV later issued a statement denying this.

In February this year, LeSports lost its TV rights to the AFC Champions League. At the time, there were reports that LeSports failed to make payments on time.

Sources said LeEco is still focusing on international business expansion, but will focus on "discipline" in the process.

LeEco has already made layoffs in China, the United States and India. Local media reported that LeEco is shrinking its plans in Russia.

Listed company LeTV reported on Wednesday that its net profit fell 3% year-on-year in 2016. LeTV's shares are currently suspended.

Editor: Nancy