① Wang Hua, general manager of the PR department of Xiaomi Group, said that the land used for municipal planning has changed, and the government needs to store it. However, there is no response from Xiaomi regarding the security deposit. ② According to information, the plot was taken by Xiaomi's wholly-owned subsidiary for 1.55 billion yuan, and a deposit of 310 million yuan was paid.
Finance Association, May 23 (Reporter Tang Zhixiao): Recently, there was news that a commercial office plot acquired by the Xiaomi Group in Xuhui District of Shanghai has been vacated.
According to public information, this plot of land is a small-sized residential plot with a volume ratio of 2.2 in the Xuhui Binjiang area of Shanghai — plot xH128D-07, Xietu Street, Xuhui District.
Wang Hua, general manager of the public relations department of the Xiaomi Group, said that the land used for municipal planning has changed, and the government needs to store it. Afterwards, a Xiaomi spokesperson posted news on its official Weibo saying that Xiaomi's operations in Shanghai are developing smoothly as usual; the so-called “stranded construction,” “loss of security deposits,” and “government fines” are completely untrue and simply false.
In October 2021, Xuhui District of Shanghai sold a commercial office site. Mi Space (Shanghai) Information Technology Co., Ltd. (hereinafter referred to as “Mi Space”) obtained the reserve price. The transaction price was 1.55 billion yuan, the floor price was 3,101 yuan/square meter, and a security deposit of 310 million yuan was paid, in line with the requirement that the deposit is generally 20% of the land payment. According to equity penetration at the time, Mi Space was an indirect wholly-owned subsidiary of Xiaomi.
At the time, Xiaomi responded that Xiaomi's Shanghai headquarters had many functions, including mobile phone research and development, finance, internet, etc. The construction plan for this plot of land was to combine multiple business teams and use it as the site for the Shanghai headquarters.
According to the land concession regulations at the time, if the concessionaire has not carried out development within 2 years, the transferor shall return the remaining state-owned construction land use rights concession price to the transferee after deducting the deposit and land idle fees agreed in this contract.
Shortly before Xiaomi gave up its land in Shanghai, the Xiaomi Nanjing Science and Technology Park in Jianye District of Nanjing officially opened on May 19 and became the headquarters of Xiaomi in East China.
The East China headquarters of the Xiaomi Group will be used as a software R&D center and talent base. In the future, it will focus on mobile phone and automotive software development and Internet services. Xiaomi officials said that it is estimated that within three years, the headquarters of the Xiaomi Group in East China will reach an office size of 5,000 people, and strive to surpass 10,000 people in five years.
Lei Jun, founder, chairman and CEO of the Xiaomi Group, said at the opening ceremony that the long-term goal of Xiaomi's future development is to invest in underlying technology on a large scale and become the world's next-generation hard-core technology leader. In all of Xiaomi's product and technology ecosystems, improving software capabilities is particularly important. This is the mission of the Xiaomi Group's East China headquarters.