Recently, there was a rumor in the market that “the regulators have investigated the projects involving Xiaomi industrial chain under review on the current science and innovation board and gem, and the IPO policy involving Xiaomi industrial chain is limited”.
On March 29, the CSRC made a heavy voice on this rumor, pointing out that the content was “untrue”. The official wechat of “Xiaomi spokesman” issued a statement that “malicious rumor litigation will be carried out to the end”. After the news release, Xiaomi’s share price rose sharply, narrowing its decline to 2.49% at the close, after falling more than 7% at one time.
no IPO restrictive policies issued
Recently, a screenshot information circulated on social media pointed out that “the projects involving Xiaomi industrial chain under review on the science and innovation board and gem have been investigated, including whether there is Xiaomi investment and whether there are behaviors such as stimulating business and expanding sales after investment”, and mentioned that “an enterprise under review for camera coating business for Xiaomi mobile phone should require the withdrawal of materials”.
On March 29, the CSRC officially responded to this rumor, pointing out that the content was “untrue”.
A spokesman for the CSRC said: “I have noticed some articles from our media about significant changes in the IPO policies of Xiaomi’s industrial chain. In this regard, we made it clear that we have not issued IPO restrictive policies for Xiaomi’s industrial chain related enterprises or carried out special investigation. We will adhere to the direction of marketization and legalization, carry out the review and registration of issuance and listing in accordance with the law, treat all kinds of enterprises fairly in accordance with the law, and ensure the stability of policy expectations. I hope all parties in the market will not believe the rumors , do not spread rumors, and jointly create and maintain a good market environment. “
In this regard, a spokesman for Xiaomi company said in a statement on its official wechat on the 29th that recently, we found that we media released a large number of distorted, fabricated and groundless false rumors against our ecological chain and related investment business. After investigation, Ling Jianping, the operator behind the we media, has been slandering our company for a long time, misleading the public’s understanding of our company and damaging our image. Before that, our company has filed a lawsuit against him and will hold a court hearing in the near future. For such malicious rumors and deliberate misinterpretation of smear attacks, we will resolutely sue to the end and safeguard our legitimate rights and interests with legal weapons.
ecological chain enterprises listed one after another
Xiaomi ecological chain originated in 2014.
Looking back on the growth of Xiaomi’s ecological chain, Tianjin Jinmi was established in 2014 and began to invest around mobile phones. The invested enterprises provide Xiaomi with products in many fields such as smart home, daily necessities, wearable devices and travel, and sell them in Xiaomi home, Youpin mall and other channels. At this time, Xiaomi mainly built an ecosystem through the upstream and downstream relationship of the supply chain.
Subsequently, Xiaomi was not limited to the investment of eco chain product enterprises and began to focus on the horizontal industries upstream and downstream of the supply chain. For example, in addition to establishing pinecone electronics in 2014 to start core making, Xiaomi also invested in Espressif Systems (Shanghai) Co.Ltd(688018) and other excellent chip enterprises, and established Changjiang industry fund in 2017 to invest in chip R & D enterprises, following the trend of localization. Since the announcement of car building in 2021, Xiaomi has initially taken shape in the layout of four Internet of things scenarios: Personal Internet of things, home Internet of things, Internet of vehicles and satellite Internet.
With the expansion of Xiaomi ecological chain is the rapid expansion of Xiaomi equipment. According to the annual report of Xiaomi group, as of December 31, 2021, the number of aiot connected devices (excluding smartphones, tablets and laptops) of Xiaomi reached 434 million, a year-on-year increase of 33.6%; The number of users with five or more devices connected to Xiaomi aiot platform (excluding smartphones, tablets and laptops) reached 8.8 million, a year-on-year increase of 40.4%.
Up to now, Xiaomi’s goal of “investing in 100 hardware ecological enterprises within five years” has long been exceeded. According to the 2021 annual report of Xiaomi group, by the end of last year, Xiaomi had invested in more than 390 companies with a total book value of 60.3 billion yuan (RMB, the same below), a year-on-year increase of 25.7%. In 2021, Xiaomi Group recorded a net income of 3.3 billion yuan after tax from the disposal of investment. Xiaomi group said that the company’s investment business can not only bring financial benefits, but also bring business synergy and promote the development of intelligent manufacturing industry.
At the same time, Xiaomi ecological chain enterprises have always been the focus of the capital market. Under Xiaomi’s investment, it has also reaped a number of IPOs No. 9 company (689009) and Beijing Roborock Technology Co.Ltd(688169) ( Beijing Roborock Technology Co.Ltd(688169) ) successively landed on the science and innovation board; Huami Technology (Zepp) and yunmi Technology (viot) have also been listed on US stocks.
shangmi technology is not profitable
However, the IPO of many Xiaomi ecological chain companies was not smooth last year. Yilai intelligent, a supplier of customized intelligent lighting products for Xiaomi, terminated the IPO of science and innovation board in July last year; After the gem IPO last year, qusleep technology is still in the registration and inquiry stage of the CSRC.
Yilai intelligent is mainly engaged in smart home lighting and control system business. It is a supplier of customized smart lighting products for Xiaomi. It has two brand products: Mijia brand and its own brand. Its own brands include yeelight and yeelight Pro whole house smart lighting system. As a Xiaomi ecological chain enterprise, in 2017, 2018, 2019 and January June 2020, the total related sales of Yilai intelligence from Xiaomi accounted for 54.92% and 54.92% of the company’s total revenue respectively.
In December 2020, the IPO application of Yilai smart gem was accepted, and the company chose to terminate the IPO on July 9, 2021 Yilai intelligence was repeatedly asked 34 questions by the Shanghai Stock Exchange in the first round of inquiry, while in the second round of inquiry, it threw another 13 questions to the point. The first round of questions mainly include ownership structure, scientific and innovative attributes, core technology, business, independence, etc. the second round of questions mainly focus on scientific and innovative attributes, independence, independence, actual controllers, etc.
Another Xiaomi ecological chain enterprise, fun sleep technology, is still in the registration and inquiry stage of the CSRC after the gem IPO last year. Qusleep technology is an Internet retail company focusing on its own brand scientific and technological innovation of household products. The company’s main business is the R & D, design, production and sales of high-quality and easy to install furniture, home textiles and other household products. The company’s core brand “8h” has a high popularity among consumers.
As one of Xiaomi’s ecological chain enterprises, Xiaomi and JD, as the shareholders behind it, have supported fun sleep technology. According to the prospectus, the total shareholding ratio of Xiaomi’s Shunwei investment and Tianjin Jinmi is 11.9%, and the shareholding ratio of Jingdong digital technology is 2.47%. In addition, Xlinmen Furniture Co.Ltd(603008) holds 2.9187% shares.
Another Xiaomi ecological chain company, sushi technology, which sprint to the gem, is still in the inquiry stage of the exchange. Sushi technology’s main products include electric toothbrush, tooth flushing device, hair dryer, razor and other small household appliances. It has its own brands “sushi”, “airfly” and “Pinjing”. As an enterprise of Xiaomi ecological chain, the related sales amount between sushi technology and Xiaomi group is high. At the same time, Xiaomi group holds nearly 20% shares of sushi technology through Tianjin Jinmi Heshun technology.
In this IPO, sushi technology plans to raise 775 million yuan to invest in the whole product upgrading project, brand promotion and marketing upgrading construction project, sushi R & D center construction project and supplementary working capital project respectively.
In addition, on March 2, the IPO audit of shangmi science and technology innovation board was terminated. Shangmi technology is committed to providing customers with intelligent commercial equipment and corresponding supporting “end and cloud” integrated services. According to the financial data, the revenue of shangmi technology in 2018, 2019 and 2020 was 966 million yuan, 1644 million yuan and 2184 million yuan respectively; The net profit was – 180 million yuan, – 209 million yuan and 4.8431 million yuan respectively.
The shareholders of shangmi technology are shining stars. Ali and Xiaomi are both shareholders of the company. In terms of equity structure, through special voting rights arrangement, chairman Lin zhe holds 40.24% of the equity of the company and is the controlling shareholder and actual controller of the company. Yunxin venture capital, controlled by ant group, holds 29.99% of the shares and is the largest shareholder of the company. Jinxing venture capital, a subsidiary of Xiaomi, holds 7.78% of the shares.
respond to hot spots in the market in time
In fact, many market participants believe that it is impossible for regulators to introduce IPO restrictive policies for Xiaomi industrial chain enterprises. A senior equity investor pointed out that the enterprise value lies in business continuity and pricing control ability in the industrial chain. Shareholders and customers are only the focus of audit, not the core. A senior investment banker pointed out that under the registration system, the equity relationship and related party transactions should be disclosed clearly, and the risk should be clear. Who the shareholders are is not necessarily a problem.
At the same time, regulators are also “blowing the warm wind” for platform economic governance and market hotspots. In mid March this year, the Finance Committee of the State Council held a special meeting to study the current economic situation and capital market issues. Platform economic governance is one of the important topics. The signal released by the meeting shows that the rectification of large platform companies will be “completed as soon as possible” according to the established work plan, but it is emphasized to “seek progress while maintaining stability” and “advance steadily”. At the same time, the meeting stressed that relevant departments should earnestly assume their responsibilities, actively introduce policies conducive to the market and carefully introduce contractive policies. We should respond to the hot issues concerned by the market in a timely manner.
After the rumors about the IPO of Xiaomi industrial chain enterprises were briefly fermented on the social platform, the CSRC immediately responded positively, pointing out that the content was “untrue”, ensuring the stability of the listing audit policy.
In fact, the recent IPO of Internet platform enterprises is advancing steadily. On March 18, the Shenzhen Stock Exchange’s gem issuance and listing audit information disclosure website disclosed the first round of inquiries and replies of ouyeyun Business Co., Ltd. (hereinafter referred to as ouyeyun business).
Ouyeyun business is a leading enterprise in China’s iron and steel industry and Internet industry. Ouyeyunshang steel industry chain service system provides integrated solution services for more than 300 steel mills and their branches, more than 100000 steel service providers and steel enterprises, more than 2000 cooperative warehouses, more than 30000 carrier vehicles and more than 600 processing centers on the platform, and plays an active role in supporting the development of small, medium-sized and micro enterprises.
Market participants pointed out that the new progress of ouyeyun business shows that the exchange is earnestly implementing the spirit of the meeting of the financial committee of the State Council and the relevant work deployment of the CSRC, effectively improving its political position, strengthening responsibility, steadily promoting the audit of platform economy enterprises, actively promoting the standardized and healthy development of platform economy, and firmly maintaining the stable operation of capital market.
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