Which companies did the two mobile phone giants invest in last year?
In response to the supply chain crisis, Huawei, which has always had little foreign investment, set up Hubble technology in 2019, focusing on upstream industry chain companies, especially in the semiconductor field.
(companies invested by Hubble in 2020; data sources: qicha, tianyancha)
According to the incomplete statistics of Sohu technology, Huawei Hubble has invested in nearly 20 semiconductor companies in the past year. Under the pressure of the international environment, Huawei is trying to obtain key technology resources and support the industrial chain through investment.
Although Xiaomi has not yet announced the specific number of investment companies, according to Wang Xiang's speech at the end of 2020, Xiaomi has invested in nearly 400 companies. Moreover, according to the financial report data, as of the end of 2019, Xiaomi has invested in more than 290 companies. It can be inferred that Xiaomi has invested in about 100 companies in 2020.
Among about 100 companies invested by Xiaomi, there are more than 30 semiconductor companies. At present, there are mainly two investment teams in Xiaomi. Among them, the industry investment department focuses on investing in upstream industry chain companies, aiming at developing advanced manufacturing. The capital source is the Yangtze River Xiaomi industry fund jointly raised by Xiaomi and Yangtze River industry fund.
(companies invested by Changjiang Xiaomi industry fund in 2020; data sources: qicha, tianyancha)
Xiaomi Wang Xiang said that through investment in technology upstream enterprises, he hopes to promote technological progress, accelerate the development of China's intelligent manufacturing and basic industries, and make Xiaomi's supply more diversified.
Investment or selling mobile phones?
For example, in 2019, Huawei Hubble investment subscribed for 2.24 million additional shares issued by sripu for 72 million yuan, with a unit price of 32.13 yuan. After this year's launch, the stock price has been climbing. As of press release, the stock price of sripu has soared to 457.89 yuan, which is equivalent to that Huawei has made 950 million yuan a year by virtue of the project.
In addition, several companies invested by Huawei are also in the process of listing. In September last year, Dongxin semiconductor completed the listing guidance and planned to apply for the IPO of the science and technology innovation board; in December, canqin technology passed the examination of the Municipal Committee of the science and technology innovation board. Shandong Tianyue and Haoda electronics have started the IPO guidance road.
For Xiaomi, the financial return of investment is more important. According to Xiaomi's financial report, in the first quarter of 2020, Xiaomi's self disposal investment recorded a net income of 226 million yuan after tax, accounting for 9.8% of the total profit, 1.157 billion yuan in the second quarter, accounting for 34.3%, and 714 million yuan in the third quarter, accounting for 17%.
Selling mobile phones or investing to make money? Xiaomi's mobile phone business revenue in 2019 is 122.1 billion yuan, and the comprehensive net profit margin of hardware is less than 1%. In the Xiaomi group: valuation methodology released by Founder Securities, it is mentioned that according to the calculation method of Xiaomi's comprehensive net profit, the comprehensive after tax net interest rates of Xiaomi's smartphones in 2019 and 2020q1 are - 2.5% and - 2.2%, with a slight loss.
Compared with Huawei's investment layout mainly in the semiconductor field, Xiaomi's investment amount is more and the scope is obviously wider. In addition to the industrial investment department mentioned above, Xiaomi also has a strategic investment department, which mainly invests in TOC companies. The investment fields include Internet, intelligent hardware, consumer goods and content. Of course, the most important thing is to invest in ecological chain companies to build the hardware ecological foundation of Xiaomi.
For example, in April 2020, Shanghai pateo, an Internet of vehicles company, won a round B strategic investment from Xiaomi group. In October, Dabai sanitary ware, a brand of intelligent hardware sanitary ware, announced the completion of strategic financing, which was jointly invested by Xiaomi group and heshunwei capital. In November, the MCN operation service platform Jujiang star completed the pre-A round of financing, which was exclusively invested by Xiaomi.
This may be related to the founder's style and the company's investment philosophy. Previously, a Huawei executive said in an interview that Huawei's M & a strategy is to acquire key technologies, integrate them into Huawei's platform, and will not make pure financial investment.
It is understood that before the establishment of Hubble investment, Huawei rarely disclosed the dynamics of foreign investment, and a few public investment projects were highly related to its own business development.
Under the leadership of Lei Jun, Xiaomi has invested in nearly 400 companies. As of September 30, 2020, the total book value of Xiaomi investment is RMB 39.5 billion, up 37.5% year on year. The total value of the investment is 50.6 billion yuan.