Xiaomi Ecological Chain Company'S Success In IPO: Do You Want To Be A Rice Eater Or Go To Xiaomi?

Xiaomi ecological chain enterprises listed Road, a few happy, several worried.

On July 9, the Shanghai Stock Exchange disclosed that the IPO of Yilai intelligent technology innovation board was terminated. On July 15, the first batch of qusleep technology gem, which had been suspended twice, was approved. Within a week, the fate of the two companies to be listed in Xiaomi ecological chain company is very different.

Comparing the performance of two Xiaomi concept companies, the 21st century economic reporter found that compared with Yilai intelligent, which was in a state of continuous growth in performance during the reporting period, the revenue and net profit of Qinshui technology, which mainly engaged in furniture products and home textile products, even experienced a significant decline in revenue and net profit during the reporting period.

What makes investors puzzled is why the two companies, which also rely on Xiaomi ecological chain to survive, failed in the IPO of Yilai intelligent company with high performance growth, while qushuike technology, with poor performance, has been able to pass the meeting smoothly. Is it due to the different listing paths or the company's operation has other secrets?

Since 2013, millet has been in the ecological chain layout for nearly 8 years“ Under the mode of "investment + incubation", Xiaomi has obtained the second performance growth curve, and has also obtained rich investment returns. The representative company is stone technology, a listed company on the science and technology innovation board.

However, all the gifts given by fate have already been marked with prices in secret. For the Xiaomi ecological chain enterprises, which are growing rapidly under the guidance of Xiaomi, it is difficult to get rid of the doubt that they are over dependent on Xiaomi. When the enterprises come to the capital market, will they continue to "be the gnawing rice clan" or "de millet oriented"? This may be a question that every Xiaomi ecological chain company must answer.

Management highly depends on Millet ecology

Compared with the two companies' prospectuses, it is not difficult to find that their operations rely too much on Xiaomi for survival, and the total number of shares held by Xiaomi is in the forefront.

During the reporting period from 2018 to 2020, the main business income of Xiaomi Series platform reached 383 million yuan, 417 million yuan and 326 million yuan respectively, accounting for 79.81%, 75.56% and 68.2% of its current main revenue respectively. From 2017 to the first half of 2020, the proportion of connected sales from Xiaomi in total revenue of Eli intelligent was 58.54%, 49.61%, 51.62% and 54.92% respectively.

As millet ecological chain enterprises, both companies adopt asset light operation and adopt the mode of "entrusted outsourcing production + Internet sales". All products adopt outsourcing production mode and do not directly involve production links. Meanwhile, in the prospectus, Xiaomi's investment platforms are listed in the sequence of major shareholders of the two companies.

The operation and sales modes are similar, and it is difficult to understand the relationship between Xiaomi company and them. However, there is a big difference in the listing fate of the two companies“ The success of Xiaomi is Xiaomi, and the failure of Xiaomi is also Xiaomi ".

According to the data, unlike the home furnishing products operated by qusleep technology under its own brand, the design, R & D, production and sales of intelligent lighting products and control systems are difficult to break away from the millet system.

According to the prospectus, Yilai intelligent is mainly engaged in the business of intelligent home lighting and control system. Since its establishment in 2012, Yilai intelligent has been rapidly and deeply bound with Xiaomi company. Especially after joining Xiaomi ecological chain in 2014, it has become a supplier of customized intelligent lighting products for Xiaomi, operating two major brand products, namely, Mijia brand and its own brand yeelight.

From 2017 to 2019, Yilai's revenue will reach 307 million yuan, 553 million yuan and 886 million yuan respectively, with a year-on-year growth of 80.30% and 60.33% respectively. In 2020, the growth rate of enterprises affected by the epidemic situation will slow down, and the annual revenue will reach 888 million yuan, with a year-on-year growth of 0.16%. It is worth noting that more than half of its revenue comes from the related sales of millet.

Moreover, more than half of Yilai's revenue comes from the sales share of Mijia brand products of Xiaomi company. During the reporting period, the proportion of Yilai intelligent's main business revenue has continued to rise from 46.62% in 2017 to 54.17% in the first half of 2020, while the proportion of product sales of company's own brand yeelight continues to decline.

Yilai intelligent said that the company's own brand and Xiaomi "Mijia" brand products have a certain degree of competition. If the company's private brand products can not continue to gain market recognition in the future, they may be impacted by the Mijia brand products and face greater competition pressure.

And the interesting sleep technology of the meeting chose to strengthen the operation of its own brand. According to the prospectus, the company's sales revenue of Xiaomi mall in 2020 decreased by 45.04 million yuan compared with the previous year. Based on the consideration of reducing the related party transactions, the company focuses on the continuous operation of 8h independent brand, and has less efforts in the development and operation of Mijia series products.

On the other hand, the R & D of e-lai intelligence was not independent before 2019, and the company shared patents with Xiaomi. As of the end of the reporting period, the company and Xiaomi had 56 patents in total.

At the same time, Xiaomi company is also an important supplier of easly, mainly providing chips and other materials. During the reporting period, the related purchase amount reached 36.0763 million yuan, 68.7555 million yuan, 96.6453 million yuan and 37.169 million yuan respectively, accounting for 15.20%, 16.40%, 14.09% and 13.92% of the operating costs of E-SMART in each period.

It is worth noting that at present, Xiaomi is also a major shareholder of Yilai intelligent. Tianjin Jinxing and Hong Kong Shunwei are the second and third largest shareholders respectively, with Xiaomi holding 24.7%.

The inseparable relationship with Xiaomi company makes regulators and investors question the independence of Yilai intelligence. The 21st century economic reporter has noticed that the core issues in the two rounds of inquiries on the Shanghai Stock Exchange are the company's independence, related party transactions and horizontal competition.

The success of science and technology innovation is questioned

Some industry insiders told reporters that in addition to the high correlation between revenue and ownership structure and Xiaomi, the actual scientific and technological innovation achievements and patent litigation issues of Yilai intelligent folding halberd IPO were also focused on by the regulatory authorities.

In the two rounds of public inquiries on the Shanghai Stock Exchange, the scientific and technological innovation attribute of Yilai intelligence is also the focus of attention. An analyst from a head securities firm in Beijing told the 21st century economic report that from the perspective of the patent attribute of Eli, it is more like a design solution provider, without core technical patents. The obstacle to the company's listing may still lie in the insufficient scientific and innovative attributes.

According to the prospectus, the company's R & D expenses during the reporting period were 15.7903 million yuan, 34.9963 million yuan, 60.6995 million yuan and 20.9455 million yuan respectively, accounting for 5.15%, 6.33%, 6.78% and 6.16% of the company's revenue, meeting the listing requirements of the science and Technology Innovation Board. However, during the reporting period, 10 of the 15 invention patents that formed the company's main revenue were jointly owned with Xiaomi technology and Xiaomi mobile.

Yilai intelligent believes that the company belongs to the "Internet of things" and "intelligent hardware" of the "new generation of information technology". Since its establishment, the company has continuously invested in the research and development of Internet of things technology. By the end of 2020, the company has obtained 16 invention patents, 14 utility model patents and 40 invention patent applications in the field of Internet of things technology.

Since its establishment, the company has applied for patents and layout of intelligent hardware related technologies every year. By the end of 2020, it has applied for more than 100 related patents, obtained 21 authorized invention patents, 43 utility model patents, and 68 invention patent applications under substantive examination.

However, the 21st century economic reporter noticed that most of the invention patents of Internet of things technology that the company has achieved business income are based on the information configuration of existing Bluetooth technology, and the intelligent hardware is mainly for the research and development of lighting equipment control methods and devices.

Similar technologies have been widely developed in listed companies such as opper lighting, Rex international, sunshine lighting, Philips Lighting (xinuofei). According to incomplete statistics, the number of lighting related enterprises in China has exceeded 20000, and most of them are developing intelligent control systems.

At present, all the products of Yilai intelligent adopt the outsourcing mode, and there is no self built production factory. Almost all the five major categories of raw materials, chips, lamp beads, electronic devices, structural devices and packaging materials are purchased from outside. This means that the company's core R & D is basically design R & D, with few technical competitive advantages.

According to the company, it has won several German if design awards, German red dot awards, Japanese good design awards and American idea design awards, and successfully achieved the Grand Slam of the four design awards with the highest gold content in the world. Market analysts believe that the above four categories of awards are top awards in the design industry. They pay more attention to the appearance design, rather than scientific and technological awards with core competitiveness.

In this regard, the Shanghai Stock Exchange asked the company to explain whether the "Internet of things" and "intelligent hardware" belong to the "new generation of information technology" are objective and accurate, the specific application of relevant technologies in the company's products and how the "intelligence" is embodied. It even questions whether the current industry positioning of the company is objective and accurate, and whether it conforms to the positioning of the science and technology innovation board.

The above-mentioned securities analysts analyzed to the 21st century economic report reporter that the current science and technology innovation board strictly requires the scientific and technological innovation attributes of the companies to be listed, and strictly examines the relevant companies' concept of rubbing and speculation to be listed on the stock market, and the fields of artificial intelligence and intelligent home furnishing are the key areas of the current audit, resulting in a large number of data withdrawal phenomenon of related concept companies to be listed.

It is not clear from the public data whether the e-lai intelligent company has chosen to terminate its listing due to lack of scientific and technological innovation. However, in the two rounds of Shanghai Stock Exchange inquiry, "science and technology innovation attribute" and "media query" have been continuously questioned.

Lost in patent litigation?

The 21st century economic report reporter noticed that in the two rounds of inquiries on the Shanghai Stock Exchange, Yilai intelligence was continuously asked to answer questions from the media. In the first round of inquiry, only seven media and we media reports were mentioned. In the second round of inquiry, Eli intelligence needed to answer questions from 10 media and we media. The focus of media attention was the patent litigation and the false credit of the actual controller.

According to reports, during the reporting period, Yilai intelligent revenue patent technology has been involved in many lawsuits.

In October 2019, during the critical period of the planned launch of Eli smart, signify filed a patent infringement lawsuit against Eli in the United States, accusing it of infringing five patents. The related products are likely to be the intelligent LED bulbs with networking and adjustable color.

Until July 2020, the two companies reached an intellectual property license contract on patent licensing matters, and signify withdrew the lawsuit and sent e-laismart to join the signify license program on its official website. At this time, it was less than a month before Yi Lai intelligent provided listing guidance. Whether the company reached an interest exchange agreement with signify for listing was widely questioned by the media.

At the end of 2020, the application for listing on the science and technology innovation board was accepted. However, in January 2021, Yilai intelligent was sued for patent infringement by Hangzhou Hongyan Electric, a state-owned enterprise. At the critical moment of IPO, the company was involved in intellectual property disputes again. Hongyan Electric said that the patent dispute between the two sides mainly involved led ceiling lamp products, and the patents involved included two utility model patents, which are currently being accepted by the court.

Yilai intelligent believes that its product technical solution is earlier than the application date of Hongyan Electric Appliance related patent, so it does not constitute infringement, and has proposed jurisdiction objection and patent invalidation request.

Some analysts have pointed out that the patent infringement disputes in the two key periods all involve the core products currently mainly operated by Eli intelligent, and the company's application for termination of listing may be difficult to get rid of the patent dispute.

Born in Xiaomi ecological chain and long at ecological chain development, whether to develop independently or continue to rely on the advantages of millet ecological chain will always be the primary problem to be solved by Xiaomi ecological chain company. However, whether we choose to embrace Xiaomi or develop independently, having core competitiveness is still the most stable ballast for enterprise development.

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