(Yicai Global) Aug. 2 -- Sun Hongbin, the new chairman of Leshi Internet Information and Technology Corp. Beijing [SHE:300104], is set to give the firm a radical shakeup, a senior executive told Yicai Global.

The company, which is the listed arm of the cash-strapped LeEco conglomerate and racked up an estimated CNY640 million (USD95 million) in losses in the first half of this year, will shift its focus to the big-screen television market and cut or spin off its other businesses, said Liang Jun, chief executive.

Liang is tasked with turning the failing business around.

Leshi Internet has wasted a lot of money on copyright acquisition in the past, he said in a recent interview. Going forward, it will focus its resources on its TV businesses and downsize its organizational structure. The firm has suffered chronic cash flow problems, he admitted, and its video business burnt a significant amount of cash due to soaring copyright prices. The company has also been trailing behind in the mobile internet market.

"Since we're already behind iQiyi and Tencent in mobile internet businesses, we can't get ahead in the near future," Liang said. "We'll refocus on the big-screen TV business. We've already built a stable base of television users, and about five million people use Leshi TV on a daily basis. The company can earn hundreds of millions of yuan each year without making new sales."

The company will slash its overseas and live-streaming business, which may take three to six months and affects the core businesses, but gives a clear sense of direction, he added, saying the 'new Leshi' will focus on home internet entertainment rather than intellectual property and advertisements.

"We used to spend billions of yuan on copyrights, just like everybody else. But we need to change that strategy," Liang said. "We won't do that anymore. We bought some exclusive broadcast rights before but we don't need them now. Why? Because with mobile users, you need to be the sole broadcaster, or they won't even open your app. But with the TV business, we don't need to own so many exclusive rights."

The firm will also change its approach to sourcing TV series, he continued. It will produce some of its own programs and externally sourced programs will include just a small number of series with exclusive broadcast rights, with most of the money being spent on acquiring underlying copyrights. This strategy will allow the firm to make big savings on intellectual property acquisition and it won't burn cash on copyrights, which other companies do.

Sun Hongbin envisions the new Leshi as having three core segments -- Leshi Video, LeTV and Leshi Pictures; the key components of which will be big-screen television sets, movie content and video websites.