Xiaomi equity fund is quietly raising 10 billion yuan

The investment industry-decoding LP learned that Beijing Zhaoyi Innovation Technology Co., Ltd. (referred to as: Zhaoyi Innovation) recently issued an announcement that the company intends to participate in the subscription of Xiaomi Private Equity Fund Management Co., Ltd. as a limited partner for 200 million yuan in its own funds. Beijing Xiaomi Intelligent Manufacturing Equity Investment Fund Partnership (Limited Partnership) fund share.

It was through this announcement that the outside world learned the secrets of Xiaomi Fund. According to Zhaoyi Innovation Announcement, Beijing Xiaomi Intelligent Manufacturing Equity Investment Fund Partnership (Limited Partnership) (Portal Partnership) (abbreviated: Xiaomi Smart Manufacturing) plans to raise a total of RMB 10 billion. Among them, the first fundraising scale was RMB 6.33 billion. At the moment when RMB raised funds, Xiaomi quietly raised 10 billion new funds, which was surprising.

Xiaomi Fund will raise 10 billion yuan

Tsinghua alumni first contributed to 2000 million yuan

What is the best of the Beijing Xiaomi Intelligent Manufacturing Equity Investment Fund Partnership (Limited Partnership), which wants to raise 10 billion?

It can be seen that Beijing Xiaomi Enterprise Management Co., Ltd. is a partner of executive affairs and subscribed for 30 million yuan in capital, accounting for 0.47%of the first fundraising. Among them, Wuhan Yizheng One Zero Enterprise Management Co., Ltd. invested 3 billion yuan, and the proportion of the first raised share was 47.39%, which is the largest limited partner of the fund. Beijing Yizhuang International Investment Development Co., Ltd. and Tianjin Haichuang Innovation Partnership (limited partnership) invested 1 billion yuan respectively, and the investment ratio was 15.8%.

This is a private equity investment fund with a strong Xiaomi color color. Tianyancha shows that Beijing Xiaomi Enterprise Management Co., Ltd. was established in August 2021. It is wholly -owned by Xiaomi Private Equity Fund Management Co., Ltd., and the latter is wholly -owned by Xiaomi Technology. A pure CVC investment institution.

In fact, Xiaomi Intelligence's largest funder Wuhan Yiyi Zero Enterprise Management Co., Ltd. is also controlled by Xiaomi Technology 100%. Unlike Xiaomi Private Equity Fund, the company mainly provides enterprise management consulting services. Based on the above, the amount of Xiaomi Corporation invested in the Xiaomi Zhizhi private equity fund for a total of 3.03 billion yuan, accounting for 47.86%of the first fundraising.

It is worth mentioning that one of the investors also also holds a small amount of Zhaoyi Innovation shares indirectly. The Beijing Yizhuang International Emerging Industry Investment Center (limited partnership) under the Yizhuang Guo Investment (Limited Partnership) holds the Beijing Integrated Circuit Design and Reception and Testing Equity Investment Center (limited partnership) 17.84%partnership shares; the latter holds 0.14%of Zhaoyi Innovation.

The announcement shows that the fund will mainly focus on integrated circuits and upstream and downstream areas (covering a new generation of information technology, intelligent manufacturing, new materials, artificial intelligence, display and display devices, automotive electrons, and upstream and downstream of consumer mobile terminals and smart devices. Non -listed enterprises in applications and supply chains conduct related investment. Tianyancha shows that the fund has invested in three companies: Aiko Micro Semiconductor (Shanghai) Co., Ltd., Hunan Farne Late New Energy Technology Co., Ltd., and Huayuan Zhixin Semiconductor (Shenzhen) Co., Ltd..

In the announcement, Zhaoyi Innovation believes that the fund focuses on integrated circuits and upstream and downstream areas. The company participates in the subscription fund share. It can use the management team, industry experience and resource advantages of professional investment institutions to expand investment channels, timely grasp the integrated circuit in time Investment opportunities in related fields are conducive to improving the company's comprehensive competitive strength.

Zhaoyi Innovation is a well -known semiconductor giant in China. Established in 2005, the company graduated from the Department of Physics of Tsinghua University in the Department of Physics of Tsinghua University. In China, Tsinghua University is the cradle of cultivation of semiconductor talents, especially the electronics department. Many leaders in the industry have come out of here. After more than ten years of development, Zhaoyi Innovation has become a leading domestic storage chip company, and it was listed on the main board of the Shanghai Stock Exchange in 2016. At present, in the Chinese market, the company ranks first in the Nor Flash storage market share, and it is also one of the top three suppliers in the world. The market value once reached 100 billion yuan.

Why do chip giants prefer to do LP

Right now, chip listed companies like to expand the landscape of rivers and lakes by doing LP.

For a long time, semiconductor companies with the highest market value in A shares have more or less experienced other semiconductor companies. In the eyes of these semiconductor companies, M & A allows the company's business to go to a new level. However, in the past two years, the chip leader has no longer attached to the expansion of mergers and acquisitions, but has begun to be enthusiastic about LP.

In September 2021, the lead chip leader Smengtai Technology Quan Ziyong Sun Sundan Company Shanghai Yanxin Consulting Management Co., Ltd. subscribed to invest in Shanghai Wuyuefeng Pujiang Phase II Equity Investment Partnership (Limited Partnership); in December 2021, Zhuo Zhuo, Zhuo Zhuo, Zhuo Zhuo Shengwei subsidiary Jiangsu Xinzhuo Investment Co., Ltd. participated in the subscription of Suzhou Yaocu Equity Investment Partnership (limited partnership) fund shares with 50 million yuan in its own fund; His owned funds contribute 30 million yuan to subscribe to the fund share of 3.16%of the Kunpeng Fund; in June this year, Shengbang Co., Ltd. intends to participate in the subscription of Shanghai Lixin Investment Management Center (limited partnership) share with its own funds. With 30 million yuan in its own funds, I participated in the share of Suzhou Yaocu Equity Investment Partnership (limited partnership) share ... chip company Qi Qi to deploy upstream and downstream industrial chains through investment industry funds, which actually reflects the rise of mergers and acquisitions, and the investment industry The advantage of the new business expansion method of the fund. In fact, the mergers and acquisitions between enterprises are not simply promoted. In the process of mergers and acquisitions, it is often dangerous, and enterprises will face the risk of failed mergers and acquisitions at any time. In 2017, Zhaoyi Innovation, who was short long, hoped to acquire Beijing Silicon Cheng to get a stepping stalls that opened the domestic DRAM chip market. In the end, due to the obstruction of Beijing Silicon's supplier, the acquisition ended in failure.

The probability of this failure was gradually amplified after the start of the trade war in 2018. The increased importance of the chip industry in various countries has aroused concerns about monopoly in the chip industry, and global trade protectionism has risen.

For semiconductor companies who want to mergers, what is even worse is that there may not be so much liquidity in the market.

This year, in order to cope with global high inflation, the Federal Reserve raised interest rates on a large scale, and global liquidity was tightened. The downward semiconductor industry in the industrial trend is experiencing the cold winter of capital. In the secondary market, the semiconductor index has a cumulative decline of more than 40%from July to April last year.

The chip giants in it, wanting to raise funds through fixed increases for large -scale mergers and acquisitions. In addition, the mature and profitable mergers and acquisitions in the market are getting less and less, and the focus of expansion is transferred from mergers and acquisitions to LP, becoming an unsuspecting move of major chip giants.

On the one hand, the investment method is more flexible to do the LP investment private equity fund. Compared with mergers and acquisitions, the required amount is small, but the leveraged resource leverage is large. At the same time, the scope of investment is wider. On the other hand, after the merger and acquisition, if the proportion of shares is high, the income and liabilities of the acquisition of the target need to be received in full receipt of the investment enterprise. In terms of investment industry funds, the proportion of subscribing shares is relatively small, and the liability risk of the company's company is also lower.

In a number of chip leading companies, SMIC has taken the lead in trying the sweet fruit of LP. According to statistics, among the 137 semiconductor companies invested by SMIC CVC SMIC, there are currently 19 science and technology boards, 2 listed on GEM, 1 on the New Third Board, 1 on the Beijing Stock Exchange. The main board is listed on one, and one of the main board of the Shanghai Stock Exchange is listed. In April of this year, SMIC's private equity fund harvested five semiconductor companies that prepare IPOs within 11 days, including the top ten CMOS image sensor companies in the world. SMIC's 2021 financial report shows that the company's investment income reached 2.927 billion yuan, an increase of 320.94%year -on -year.

Nowadays, more and more semiconductor leading companies have joined the LP army, and the domestic semiconductor industry ushered in new "source living water".

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