Wu Bihui / Wen, operator Finance and Economics

According to Tianyan survey data, on March 13, Beijing Xinertai Technology Co., Ltd. (hereinafter referred to as "Xinertai") announced the completion of hundreds of millions of yuan of financing. This round of financing is led by China Mobile Investment, Unicom CICC, FiberHome Industry Fund, Red soil Zhanlu, Xidian Tianlang, Jingwei Hengrun, Wuhan Heshan Investment. What is so unique about this company that it can attract investment from two operators at once?

It is reported that as early as the end of last year, Xinertai disclosed in the plan that it planned to raise 193 million yuan through a fixed increase, of which the China Mobile Investment Plan subscribed for 100 million yuan, accounting for the bulk of the investment.

Data show that Xinertai was founded in 2007 and is located in Beijing. Since its inception, Xinertai has focused on the field of communication testing and is committed to providing customers with stable, reliable and cost-effective network testing products and testing solutions. It has achieved a number of technological breakthroughs in domestic network testers, and developed a test scheme covering scientific research testing-production testing, wired testing-wireless testing, equipment testing-operation and maintenance testing.

So what is the relationship between the company and the communications operator?

With the advent of the 5G era, there are many differences between 5G and other networks, such as different frequency bands, different deployment procedures of operators, and the universality of applications such as the Internet of things, conventional mobile communications, traffic networks and so on. This has led to highly differentiated network and test data. In order to ensure that the 5G network provides good services, operators need to test the stability and performance of the network, as well as the security of the network.

With the digital transformation and the in-depth development of 5G commercial, the demand for communication network testing continues to grow. Xinertai is a leader in this field, and it is normal for China Mobile and China Unicom to invest.

In addition, China Mobile Investment is a wholly owned subsidiary of China Mobile, which is responsible for the centralized management of equity investment and capital operation within China Mobile system, while Unicom CICC is the equity investment management platform of the joint venture between China Unicom and China International Capital Corporation, mainly invests in high-quality enterprises related to China Unicom's industrial chain, including cloud computing, big data, Internet of things, artificial intelligence, network technology, information security and industrial Internet.

Many projects of China Mobile Investment are very successful, but some investment projects are not successful. For example, in 2020, China Mobile Capital transferred 41 million shares of Huayu Software held by Shao Xue and others, and became the second largest shareholder of Huayu Software. At that time, the transfer price was 22.11 yuan per share, and the total transaction consideration was 906 million yuan. According to the closing price of 9.17 yuan per share until March 16, 2023, China Mobile Capital has lost more than 50 percent in the past 10 months.