On March 4, the share price of Chengdu Xgimi Technology Co.Ltd(688696) ( Chengdu Xgimi Technology Co.Ltd(688696) , SH), the leader of intelligent projection, fell 7%. On the news side, the company’s shareholder Baidu related companies disclosed the reduction plan on March 3. Baidu is an important shareholder of Chengdu Xgimi Technology Co.Ltd(688696) , and the two sides also have in-depth cooperation in technology. Therefore, the news of its proposed reduction has attracted market attention. On the afternoon of March 4, Chengdu Xgimi Technology Co.Ltd(688696) Board Secretary Xue Xiaoliang told the reporter of the daily economic news that Baidu’s reduction was mainly due to its own capital needs and would not affect the current cooperation between the two sides.
Baidu gained a lot from its investment
Chengdu Xgimi Technology Co.Ltd(688696) announced on March 3 that the company’s shareholder Beijing Baidu Netnews Technology Co., Ltd. (hereinafter referred to as “Baidu Netnews”) plans to reduce the number of shares by means of competitive trading and block trading to no more than 1277100 shares, accounting for 2.55% of the company’s total share capital; The shareholder Beijing Baidu Biwei enterprise management center (limited partnership) (hereinafter referred to as “Baidu Biwei”) plans to reduce the number of shares by means of competitive trading and block trading to no more than 862700 shares, accounting for 1.73% of the total share capital of the company. In total, baidu.com and Baidu Biwei reduced their holdings of no more than 2139700 shares, that is, no more than 4.28% of the company’s total share capital.
Baidu.com and Baidu Biwei are enterprises controlled by the same actual controller and persons acting in concert. They hold a total of 5.8043 million Chengdu Xgimi Technology Co.Ltd(688696) shares, accounting for 11.61% of the total share capital of the company.
Qixin Bao shows that Baidu Netnews is holding 99.5% and 0.5% respectively by Robin Li and Cui Shanshan. Baidu Biwei is controlled by Dazi bairuixiang Venture Capital Management Co., Ltd. (hereinafter referred to as bairuixiangchuang), which is a wholly-owned subsidiary of Baidu Netcom Chengdu Xgimi Technology Co.Ltd(688696) prospectus said that according to the 2019 annual report disclosed by Baidu, baidu Netcom is a company controlled by Baidu agreementP align = “center” pictures of equity structure of Baidu Netnews and Baidu Biwei source: screenshot of qixinbao
Baidu’s investment in Chengdu Xgimi Technology Co.Ltd(688696) is a success Chengdu Xgimi Technology Co.Ltd(688696) prospectus shows that on December 26, 2017, Jimi Co., Ltd., the predecessor of the company, held a shareholders’ meeting and agreed to increase the registered capital to 10106125 million yuan. The newly increased registered capital of 1091272 million yuan was subscribed by the new shareholders Baidu Biwei, baidu Netnews and Sichuan wentou, including 711699 Yuan subscribed by Baidu Netnews and 237233 yuan subscribed by Baidu Biwei.
The price of the above capital increase is 210.76 yuan / capital contribution. Based on this estimation, the capital increase costs of Baidu Netnews and Baidu Biwei are 150 million yuan and 50 million yuan respectively. After this capital increase, baidu Netnews and Baidu Biwei contributed 7.0423% and 2.3474% to Jimi Co., Ltd. respectively.
In March 2018, Jiarui trading, the shareholder of Jimi Co., Ltd., transferred the capital contribution of 647223 yuan to baidu.com. The equity transfer price is about 179.15 yuan / capital contribution. Baidu.com spent 116 million yuan to increase its capital contribution to 134466%, becoming the second largest shareholder of the company after Zhong Bo.
In June 2019, Jimi Co., Ltd. changed to establish a joint stock company Chengdu Xgimi Technology Co.Ltd(688696) ; In the same month, the total share capital of the company increased from 36.75 million shares to 37.5 million shares, with a new registered capital of 750000 yuan. After the capital increase, baidu Netcom and Baidu Biwei held 131776% and 2.3005% shares of the company respectively. After Chengdu Xgimi Technology Co.Ltd(688696) was listed in March 2021, the shareholding ratio of Baidu Netnews and Baidu Biwei was changed to 9.88% and 1.73% respectively.
Over the years, the original investment of Baidu’s two companies in Chengdu Xgimi Technology Co.Ltd(688696) was about 316 million yuan. Estimated by Chengdu Xgimi Technology Co.Ltd(688696) the closing price (401.01 yuan / share) as of March 4, the total market value of the company’s shares held by baidu.com and Baidu Biwei is about 2.328 billion yuan; Based on the upper limit of share reduction, the total amount of cash reduction of the two companies may exceed 800 million yuan.
It is worth mentioning that Sichuan Cultural Industry equity investment fund partnership (limited partnership), mango media and Chengdu Xgimi Technology Co.Ltd(688696) employees who participated in the strategic placement collective asset management plan of the science and Innovation Board also gained a lot.
Chengdu Xgimi Technology Co.Ltd(688696) : no impact on business cooperation
The reporter of the daily economic news noted that Baidu is not only an important shareholder of Chengdu Xgimi Technology Co.Ltd(688696) but also a business partner of the company.
Chengdu Xgimi Technology Co.Ltd(688696) prospectus disclosed that in 2017, in order to strengthen the promotion of overseas markets, the company reached a cooperation agreement with Baidu and specially designed and developed intelligent projection products Shanghai Aladdin Biochemical Technology Co.Ltd(688179) . In 2017, 2018, 2019 and January June 2020, the transactions between the company and Baidu mainly included the design and development expenses of Shanghai Aladdin Biochemical Technology Co.Ltd(688179) products, sales of intelligent projection products and Internet services. The total transactions of each year were RMB 2.028 million, RMB 708543 million, RMB 246668 million and RMB 221749 million respectively.
At the same time, Chengdu Xgimi Technology Co.Ltd(688696) prospectus also revealed that Baidu is the partner of the company’s AI platform, “the company’s product software system is equipped with Baidu’s dueros artificial intelligence platform, which improves the intelligence of the product”. In March last year, when replying to investors’ inquiries on the interactive platform, Chengdu Xgimi Technology Co.Ltd(688696) once said that the company had a number of technical cooperation with Baidu and launched products equipped with intelligent voice system.
“Baidu’s reduction is mainly due to its own capital needs and will not have an impact on the current business cooperation between the two sides.” Chengdu Xgimi Technology Co.Ltd(688696) Board Secretary Xue Xiaoliang told the reporter of the daily economic news. He further pointed out that the company’s daily operation is normal. For Baidu’s shareholding reduction plan, the company will communicate closely with Baidu and do a good job in the corresponding information disclosure according to the regulatory requirements.
In terms of performance, the performance of Chengdu Xgimi Technology Co.Ltd(688696) after listing is still rising. In 2020, the company achieved a net profit of 269 million yuan, a year-on-year increase of 187.79%; According to the performance express of 2021, the net profit of the company in 2021 was 489 million yuan, a year-on-year increase of 81.79%.
