LeEco has been facing financial hurdles as a result of the firm's rapid pace of business growth. (Photo : Getty Images)
According to stock market filings on Thursday, LeEco has secured $2.2 billion which will be used for the Chinese tech firm's smart Internet TV and film production subsidiaries, Reuters reported.
LeEco's new funding came from first-time investors including property developer Sunac China Holdings and Tianjin Jiarui Huixin Corporate Management Company.
The article noted that in an earlier filing by LeEco's Leshi Internet Information, Tianjin Jiarui Huixin is controlled by Sunac China.
In November last year, LeEco founder Jia Yueting revealed that the company has been experiencing cash shortage, admitting that the firm suffered from its fast-paced, multi-directed expansion efforts.
The new investment funds, as announced earlier in January, will be funneled into Le Vision Pictures (its film subsidiary), Leshi Zhixin (its smart Internet TV arm) and Leshi Internet Information.
Apart from LeEco's new funding, its recent filing also noted that it has already resolved an industry competition issue.
Gan Wei, Jia's wife, was reported to have founded Chinese web TV and film outfit Le Young Pictures, a potential rival to LeEco's entertainment businesses. To comply with regulations, Leshi shared that it will acquire Gan's 47.8 percent stake in the firm.
Meanwhile, Leshi remarked that Han Fangming, its vice president, will resign from its board to give way to the position of a new director representing LeEco's new investors. Tianjin Jiarui Huixin nominated Liu Shuqing, a high-level manager at Sunac China, to become a non-independent director.
The Leshi statements that were issued come as the tech firm vowed to bring forth conclusive and comprehensive announcements.
Last week, the company's stock price increased as Compal, one of its suppliers, bought a stake in Leshi Zhixin.
For Sunac China's chairman, Sun Hongbin, he needs to wait and see if his firm could pour in more investments in LeEco.
"We will if it's suitable, but if not then forget it. We're not a non-profit organization," he told a press conference in Hong Kong.
