Xiaomi's investment company Lihexing IPO: Huawei orders account for 75% of revenue

As early as 2019, Shenzhen Lihexing was delisted from the New Third Board. The company is an automation equipment manufacturer. In early 2019, it received investment from Hubei Xiaomi Changjiang Industrial Fund Partnership (Limited Partnership) and Yuanzhi Fuhai (controlled by Shenzhen State-owned Assets Supervision and Administration Commission). According to Jiwei.com, the company plans to raise 580 million yuan through IPO!

It is understood that since its establishment, the company has focused on the research and development, production and sales of automated and intelligent equipment, and is committed to becoming a leading intelligent manufacturing solution provider in the field of new generation information and communication technology (5G). At present, as an equipment supplier, the company mainly serves customers in the fields of information and communication technology, and realizes the deep integration of high-end equipment manufacturing with new industries such as the new generation of information technology. The company's products are mainly used in the detection and manufacturing of mobile smart terminals and network infrastructure devices. The company's customers include well-known companies such as Huawei, Foxconn, Vertiv, TCL, Fuji Xerox, and Canon. 

According to the author's inquiry, Hubei Xiaomi Changjiang Industrial Investment Fund Management Co., Ltd. had previously invested in the company. After this issuance, Xiaomi still holds 2.88% of the company's shares! In addition, Shenzhen Technology is also a shareholder of Lihexing and is one of the top five customers of Lihexing!

In terms of details, the company's main products are testing equipment and process equipment, which are mainly used in the manufacturing of products such as smart terminals, smart cameras and 5G base station devices. They are used to test the electrical properties, optical properties, audio properties, tactile properties, waterproof properties, reliability, appearance, size, etc. of downstream products, or to achieve precision welding, precision bonding, assembly packaging, transfer logistics and other tasks in the production process.

During the reporting period, the company's main business income was RMB 229.9102 million, RMB 408.1821 million, RMB 578.7284 million and RMB 83.6154 million, respectively, with a three-year compound growth rate of 58.66%; the net profit was RMB 30.7402 million, RMB 42.5265 million, RMB 104.0954 million and RMB 21.2655 million, respectively, with a three-year compound growth rate of 84.02%.

From the perspective of customer groups, in 2013, the issuer became a supplier of Huawei. With the development of downstream customers, the company's sales revenue from the largest customer during the reporting period was RMB 161,467,400, RMB 250,594,000, RMB 436,862,300 and RMB 39,726,000, accounting for 69.22%, 61.38%, 75.47% and 47.49% of operating income, respectively. From 2017 to the first three months of 2020, the total revenue share of its top five customers exceeded 92% of total revenue.

It is worth mentioning that it emphasized that Shenzhen Technology is a shareholder of the company, but its shareholding ratio is less than 5%. According to relevant regulations, Shenzhen Technology is not an affiliated party of the company.