On July 22, the first batch of 25 Science and Technology Innovation Board companies all rose sharply on the first day of listing. As of the close, the largest increase exceeded 400%, and the smallest increase exceeded 84%.

htmlOn July 22, the first batch of 25 companies on the Science and Technology Innovation Board all rose sharply on the first day of listing. As of the close, the largest increase exceeded 400%, and the smallest increase exceeded 84%. As one of the shareholders of two science and technology innovation companies, Xiaomi (688018.SH) and Fangbang Co., Ltd. (688020.SH), the stock value in its hands has also soared to 434 million yuan. While making a small profit, the layout of Xiaomi in Chinese science and technology innovation enterprises has also emerged more clearly with the opening of the Science and Technology Innovation Board.

Beijing: Xiaomi headquarters. Picture/Visual China

investment companies' stock prices rose sharply. Xiaomi holds a market value of 434 million

Before Lexin Technology went public, Xiaomi held 3% of its shares, totaling 1.8 million shares. The company's stock price rose sharply on the first day of its listing. As of the close, the stock price closed at 129.11 yuan, up 106.25%. Based on this price, the market value of Lexin Technology shares held by Xiaomi has reached 232 million yuan.

Some media reported that Xiaomi had previously invested in Esxin Technology for about 35 million yuan. According to this data, Xiaomi net profit was nearly 200 million yuan. The two transactions mentioned in the report were that on May 26, 2016, Jinmi Investment subscribed to the newly added registered capital of US$22,696 million by Eslite Limited (the predecessor of Eslite Technology ) for RMB 9.75 million; on August 13, 2018, Eslite Hong Kong (the controlling shareholder of Eslite Technology ) transferred its 1.5% equity in Eslite Limited to Jinmi Investment for US$3.75 million. Jinmi Investment is an investment company under Xiaomi .

Beijing News reporter found on Qichacha that in December 2016, Lexin Technology conducted a round A financing of 100 million yuan, and the capital under Fosun , Xiaomi , and Haier all participated. Including this transaction, the cost of holding Xiaomi should be higher than the above calculation.

Xiaomi investment in Fangbang shares is a "shock investment". On March 26 this year, the company's shareholder Ye Yong transferred his 23.33% stake in Fangbang shares, totaling 2 million shares, to the Xiaomi fund under Xiaomi at a price of 50 million yuan. The Xiaomi fund became the eighth largest shareholder before the issuance of Fangbang shares.

htmlOn July 22, the stock price of Fangbang Co., Ltd. closed at 101.1 yuan on the first day of listing, up 87.64%. The 2 million shares owned by Xiaomi are now worth 202 million. Based on today's closing stock price, this order, Xiaomi also made as much as 150 million yuan.

Xiaomi layout: Deep into the upstream and downstream of the supply chain

For Xiaomi , the super unicorn, the investment income of hundreds of millions of yuan obviously cannot constitute the biggest driving force for its investment. As a core component and material provider of mobile phones and IoT devices, the technical strength of both Esxin Technology and Fonbang both reach or even lead international standards. The significance of the core components and materials they produce to Xiaomi "mobile phone + AIoTh" dual engine strategy is the deep reason for Xiaomi 's investment.

According to the prospectus for Lexin Technology, the company's sales to Xiaomi in 2018 were 44.0979 million yuan, accounting for 9.29% of its operating income. Espress Technology is a pioneer enterprise in the world's IoT device master chip (WIFI MCU). It is the only mainland enterprise that belongs to the first echelon of Qualcomm , TI, Marvell, Cypress, Realtek , MediaTek and so on.

In 2018, Lexin Technology products accounted for 33.59% of China's IoT devices, reaching the first market share. Guosheng Securities believes that Esxin Technology's main product is the core communication chip in the field of IoT, it is the leader of domestic Internet of Things Wi-FiMCUs and has global influence.

Fangpang Co., Ltd. is the first domestic research and development supplier to collect electromagnetic shielding films, conductive adhesives, extremely thin flexible copper clad plates and extremely thin peelable copper foil . Its products are important materials for 5G core device FPC. The performance of electromagnetic shielding films developed by Fonpang Institute has reached the international leading level, breaking the long-term monopoly of Japanese companies in this field, and is one of the important upstream suppliers of well-known domestic and foreign mobile phone brands such as Huawei, , Xiaomi, , etc.

For Xiaomi , the success or failure of its two core businesses, mobile phones and IoT ecosystem chain, not only depends on its own core software and hardware research and development of smart terminals, but also requires investment in emerging enterprises in the field of intelligent technology manufacturing, so as to be able to go deep into the upstream and downstream of the intelligent manufacturing industry, strengthen industrial collaboration, and provide ecological support for the promotion of the "mobile phone + AIoT" dual engine strategy.

main investment in hard technology and advanced manufacturing, what is the ambition of Xiaomi ?

During the 8-month preparation period, the number of companies accepted by the Science and Technology Innovation Board reached 149, and finally 25 companies became the first listed companies on the Science and Technology Innovation Board with the approval of the China Securities Regulatory Commission. According to incomplete statistics, among the companies that have previously publicly prepared to list on the Science and Technology Innovation Board, nearly ten companies have Xiaomi shares and indirect shares.

Xiaomi insider revealed to the Beijing News reporter that unlike the investment logic of most companies seeking control or diversified operations, Xiaomi 's investment revolves around its own core business, "participate in shares but not control". While strengthening the coordination capabilities of the industrial chain, it also respects the independent development of enterprises and partners, and empowers it with Xiaomi 's technology, supply chain and brand. However, some analysts believe that the shareholding ratio of Xiaomi in these companies cannot bring enough voice, and may affect Xiaomi 's control over ecological chain enterprises.

Beijing News reporter learned from Xiaomi that the industrial investment layout of Xiaomi mainly revolves around hard technology and advanced manufacturing, and the investment areas include chips, advanced parts, AI, robots and intelligent manufacturing, new materials and processes, etc. Xiaomi insider told the Beijing News reporter that Xiaomi industrial investment is not only to improve the control of the industry chain, but also hopes to use the Xiaomi platform to drive the development of the upstream and downstream of the entire industrial chain.

However, Xiaomi 's ambition is not without competitors - Honor, which once brought tremendous pressure to Xiaomi in the mobile phone industry, announced its "smart screen" product on July 15 this year. It is generally believed that this is a signal that Honor is preparing to enter the smart home IoT industry. Every giant player is working hard to "drive the entire industrial chain", but it is still unknown who can truly promote the improvement and transformation of the industry.

Intern reporter Xu Nuo Reporter Chen Weicheng Editor Zhao Ze Proofreader Wu Xingfa