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Some time ago, two news were released almost simultaneously, and both of them were related to Xiaomi.

One is Mulinsen, a powerful and large-scale lighting enterprise, LED packaging industry The leader of the company, a listed company on the Shenzhen Stock Exchange, has a revenue of 18.973 billion yuan in 2019. It has acquired the well-known Landvance under Osram, and recently introduced the Xiaomi Yangtze River Industry Fund.

The other is Dongyi Risheng, a leading enterprise in the home improvement industry, with a revenue of 3.802 billion yuan in 2019. In July, it also raised a capital of no more than 134 million from Xiaomi Technology.

The occurrence of these two events is expected to have undergone a relatively long period of discussion and matching. Mulinsen, Dongyiri Sheng needs investors like Xiaomi, who can provide funds and may bring traffic. And Xiaomi also needs substantial cooperation in the home furnishing industry.

According to Dacai’s research and observation, for a long time, Xiaomi has been keen to line up in the pan-home furnishing industry, investing or establishing many companies, to say nothing more than a dozen. But most of them are at the start-up stage, with a scale of tens of millions or hundreds of millions, and rarely get involved in listed companies with relatively mature businesses.

Of course, it has also incubated benchmark companies in the ecological chain, such as Roborock, a robot sweeper, Huami, a smart watch, sports headset, smart treadmill, and other products, and it is also preparing to sprint into science and technology. Board of Chengdu Fun Sleep Technology and so on.

And this time, continuously entering the two major pan-home furnishing listed companies, it can be seen that they have to do important things. This will have a certain impact on the future home furnishing industry layout, and may enhance Xiaomi’s home furnishing industry The appeal.

getUrls?link=e36614af82f0630e780db291dc5eeac7 - Storm is coming again! Two major home furnishing companies have introduced investment from Xiaomi

01

Look at Mulinsen first, the time is In July, Mulinsen announced that the board of directors reviewed and approved the”Proposal on the Company’s 2020 Non-public Issuance of Stocks” and other related proposals , Intends to privately issue A shares to Hubei Xiaomi Yangtze River Industry Fund Partnership (Limited Partnership). The two parties have signed relevant agreements.

The specific content is that no more than 40,064,102 shares will be issued to the Xiaomi Yangtze River Industry Fund, at an issue price of 12.48 yuan per share, and the raised funds will not exceed about 499 million yuan.

The major shareholder Sun Qinghuan reduced its holding of Mulinsen by 1%on July 10, making it hold The proportion of shares dropped from 56.02%to 55.02%. Sun Qinghuan has not yet released the pledge of company shares, accounting for 25.93%of the company’s total share capital.

According to this plan, Xiaomi Yangtze River Industry Fund’s shareholding ratio in Mulinsen will not exceed 5%, Has the right to nominate one director candidate to Mulinsen. This means that Xiaomi will maintain a certain right to speak in the business development of Mulinsen.

In addition to capital-level cooperation, the two parties will have actions in business. According to public information, the cooperation will probably include:

1. Cooperation in product development, especially Xiaomi’s consumption The technical advantages in the electronics field ensure that LED lighting products and display module products can meet the needs of consumer electronics products and the needs of new product development.

2. Promote the inclusion of Mulinsen related smart lighting products into the Mi ecological chain layout.

3. Assist in improving the operation and management capabilities of Mulinsen.

4. Cooperate in capital market and capital structure optimization.

Investors are also more interested in introducing Xiaomi, and there are continuous related questions. Mulinsen also I responded, and probably the content is:

Cooperate with Xiaomi in the field of lighting to achieve synergy between the two parties in business areas such as smart lighting, Mini LED and UVC LED applications.

Mulinsen has become the leader of LED packaging, but this superior business alone also has a ceiling . The large-scale manufacturing and application of Mini-LED direct display and Mini-LED backlight are currently being accelerated, which represents the next growth trend.

At the same time, Mulinsen is still looking for ways to seize the smart lighting market and deploy the UVC field, such as spending 6.66 Billion, signed the”Deep Ultraviolet Semiconductor Intelligent Sterilization Project Cooperation Agreement” with Zhishan Semiconductor to enter the field of deep ultraviolet semiconductor intelligent sterilization.

Many of these new actions will involve new technologies, new sales channels, and are more inclined to the retail market. These are the advantages of Xiaomi, which is very important for Mulinsen is expected to provide support.

But whether it can be coordinated depends on the follow-up specific measures.

02

July 13, Dongyi Risheng Home Decoration Group Co., Ltd. issued the”Announcement on the Company’s Non-public Issuance of Stocks to Introduce Strategic Investors and Signing of Strategic Cooperation Agreements” stating that:

Introduction through non-public issuance Xiaomi Technology (Wuhan) Co., Ltd., as a strategic investor, will raise no more than 134 million yuan in funds,Xiaomi Technology intends to subscribe with cash.

The final shareholding is about 5%, and one director will be sent to participate in the Dongyi Risheng Governance.

The two parties have signed the”Strategic Cooperation Agreement”. The two parties will conduct in-depth exchanges and exchanges on the joint development of smart home package products, the supply of supporting smart home appliances, Internet advertising, and supply chain financial cooperation in areas such as residential decoration. Strengthen cooperation.

The specific landing strategy may be that in the home improvement business of Dongyi Risheng, Introduce Xiaomi’s smart home and home appliances to form smart home decoration, which is often referred to as”smart decoration”, and it is a one-stop solution.

Furthermore, it may also take advantage of Xiaomi’s huge traffic resources, Dongyi RishengMay get a certain recommendation, or Xiaomi smart home package sales, and at the same time with the decoration business of Dongyi Risheng.

According to public information, the two parties will indeed cooperate on traffic, Dongyi Risheng Open online promotion resources for Xiaomi Technology, including official website, official account, APP, etc. And Xiaomi will also provide some advertising resources.

Dacai Research believes that if this cooperation can be implemented, it will be of great value to Dongyi Risheng big. The effectiveness of all this depends on whether there is a possibility of substantive progress in the future.

Thinking about Xiaomi’s hundreds of millions of user resources, it’s heart-warming. According to the financial report, as of June 2020, Xiaomi MIUI has 340 million monthly active users worldwide, and 32 million monthly active users of smart TVs and Xiaomi boxes.

The Mijia APP has 40.8 million monthly active users, Xiaoai’s 78.4 million monthly active users, and 5.1 million users with 5 or more devices connected to the Xiaomi IoT platform. Even Xiaomi TV has 4 million paying users.

In addition, there is a cooperation in financial services, that is, Xiaomi Finance will be Dongyi RishengThe group’s supply chain companies provide multi-level financial services

In terms of customized hardcover business for real estate companies, the two parties also have plans to strengthen cooperation and explore how to provide more effective home decoration and smart home decoration solutions .

Dacai Research believes that the decoration industry is facing more severe challenges this year. Public decoration companies are better, and the situation of home decoration is worse. Dongyi Risheng was not spared either. This time, the financial support from Xiaomi can also achieve business-level cooperation. From the public level, it will indeed help to reverse the situation.

But it all depends on how many plans can be implemented.