Xiaomi Leads The Establishment Of A New Fund Of 10 Billion Yuan To Invest in The Chip Industry

 

 

Kingsoft announced that on March 2, 2023, Wuhan Kingsoft (as a limited partner), Xiaomi Beijing (as a general partner), Xiaomi Wuhan and other investors (as a limited partner) entered into an agreement on March 2, 2023. The partnership agreement, the content of which is related to the establishment of the fund, is expected to subscribe for a capital contribution of 10 billion yuan.

 

At the same time, it pointed out that according to the partnership agreement, Wuhan Jinshan will participate in the fund as a limited partner and agree to contribute 500 million yuan. After the establishment of the fund, it will not become a subsidiary of the Company, and the fund will not be included in the consolidated financial statements of the Group.

 

According to the content of the announcement, the fund will be mainly engaged in equity investment or quasi-equity investment (direct or indirect), or investment-related activities in unlisted companies (including equity of unlisted companies and non-publicly issued shares of listed companies or similar interests), These companies mainly focus on integrated circuits, and related upstream and downstream fields (covering new generation information technology, smart manufacturing, new materials, artificial intelligence, displays and display devices, automotive electronics, and upstream and downstream related mobile terminal consumer goods and smart devices) downstream applications and supply chain).

 

It is understood that the fund is expected to subscribe for a capital contribution of 10 billion yuan. As of now, it is expected that all partners will make a capital contribution commitment of 9.03 billion yuan. Among them, Xiaomi Wuhan Company plans to invest 3 billion yuan, accounting for 33.22%; Diaowei plans to invest 100 million yuan, accounting for 1.11%.

 

According to the partnership agreement, the fund shall establish an investment decision-making committee (investment decision-making committee), whose members shall be designated by the fund manager to be responsible for (among other things) investment and withdrawal matters. In principle, the investment decision-making committee is composed of no more than eight (8) members, of which Xiaomi Wuhan has the right to nominate four (4) members, Yizhuang International Investment has the right to nominate one (1) member, and Tianjin Haichuang has the right to nominate One (1) member, Beijing Guiding Fund has the right to nominate one (1) member.

 

Mr. Lei Jun will be appointed as the chairman of the investment decision-making committee, and the members of the investment decision-making committee will each have one vote. All decisions submitted to the Investment Decision Committee for voting must be approved by more than four (4) members. The investment decision-making committee will have observers designated by the fund manager, who have the right, among other things, to be informed of committee meetings and attend meetings, but not to have voting rights.

 

Jinshan Software stated that the fund relies on the industrial advantages of Xiaomi Fund and focuses on investing in integrated circuits and related upstream and downstream fields (covering new generation information technology, smart manufacturing, new materials, artificial intelligence, displays and display devices, automotive electronics, and related industries) Upstream and downstream applications and supply chains of mobile terminal consumer goods and smart devices). The company believes that taking this opportunity to invest in industries that are in line with the national innovation-driven development and industrial transformation trends through this fund will enable the company to achieve continuous optimization of its asset allocation structure and benefit from China's fast-growing industries. In addition, the general partner and fund manager of the fund have rich industry investment experience and excellent historical performance. The company's investment in the fund is expected to obtain a better return on funds, thereby improving the company's capital utilization efficiency.