On July 24th, according to "Science and Technology Innovation Daily" (Reporter Li Mingming), Lei Jun has big moves again, and the 10 billion yuan Xiaomi Smart Manufacturing Fund has completed fundraising.

Recently, Kingsoft announced that adjustments have been made to the plan of Beijing Xiaomi Smart Manufacturing Private Equity Investment Fund Limited Partnership (hereinafter referred to as "Xiaomi Smart Manufacturing Fund"). After the adjustment, the total paid-in capital of the fund will increase from RMB 9.03 billion to RMB 10 billion. The additional paid-in capital of RMB 0.97 billion will be made by several existing limited partners and new limited partners.

According to "Science and Technology Innovation Daily", the fund is under the personal leadership of Lei Jun, the chairman of the investment decision-making committee, and is an executive partner of Xiaomi, responsible for the specific investment operations and daily management of the fund.

An industry insider close to Xiaomi told "Science and Technology Innovation Daily" that Lei Jun personally served as the chairman, which reflects his personal and Xiaomi's importance to the fund, as well as his emphasis and determination on the field of intelligent manufacturing. In the context of relatively difficult fundraising, a fund with a scale of tens of billions is still relatively large. In recent years, Xiaomi has frequently made moves in the field of technology investment, but funds of similar size are less common.

The fund has a total of 17 luxury shareholders.

The main large-scale contributions of Xiaomi Smart Manufacturing Fund are: Xiaomi Wuhan contributes RMB 3.6 billion, accounting for 36%; Beijing Guiding Fund contributes RMB 2 billion, accounting for 20%; Yizhuang International and Tianjin Haichuang each invest RMB 1 billion, accounting for 10% respectively; Guangzhou Huaduo and Xingzheng Investment Management each contribute RMB 0.5 billion, accounting for 5% respectively.

The LP lineup of the fund is very strong, with 17 shareholders, covering famous state-owned assets and industrial capital.

In terms of state-owned assets platforms, it includes Beijing Guiding Fund, Fujian Jincong, Ganzhou Guangkong and other provincial and municipal state-owned assets.

In terms of industrial capital, it includes enterprises with close relations to Xiaomi, such as Joyy Times, Dio Micro, Naxin Micro, Nanshan Semiconductor, and Jervatec Microelectronics.

According to "Science and Technology Innovation Daily", the first four, including Joyy Times, are companies that Lei Jun has previously invested in.

Among them, Joyy Times was founded in April 2005. At that time, Lei Jun invested $1 million as an angel. In November 2012, Joyy Times was listed on the Nasdaq. Although Lei Jun has withdrawn from the company's shareholder ranks in recent years, he still serves as a supervisor.

The other three are chip companies. In 2018, Zimi Technology, a subsidiary of Xiaomi, and Shunwei Capital, created by Lei Jun, participated in the A-round financing of Nanshan Semiconductor, which was the first chip company invested by Lei Jun. In April of last year, Nanshan Semiconductor was listed on the Science and Technology Innovation Board, with a market value of RMB 13.866 billion. At the beginning of 2020, Xiaomi Group invested in Dio Microelectronics through its Longjiang Industry Fund, holding 17.23% of the shares. In January 2021, the Hubei Longjiang Industry Fund Limited Partnership acquired 0.0697 million shares of Naxin Micro held by Guorun Ruiqi for a transfer price of only RMB 27.27 per share.

Investment in the upstream and downstream of the auto industry chain, latest move is the investment of Qingdao Yunlu New Energy.

The preparation for Xiaomi Smart Manufacturing Fund has been in the works for a long time: at the end of 2021, Lei Jun established Xiaomi Private Equity Fund Management Co., Ltd., and Xiaomi officially entered the field of private equity investment. Subsequently, Xiaomi Smart Manufacturing Fund completed the filing and Lei Jun served as the chairman of the investment decision-making committee. The fund is still the only fund established under Xiaomi's private equity.

Xiaomi Smart Manufacturing Fund has raised funds relatively smoothly. Since its first delivery in July 2022, the fund has raised RMB 6.33 billion; in March of last year, the fund raised an additional RMB 2.7 billion; recently, after adding an additional investment of RMB 0.97 billion, the scale of the fund has reached RMB 10 billion.

According to public information, Xiaomi Smart Manufacturing Fund focuses on investing in the integrated circuit and the entire industrial chain (covering new-generation information technology, intelligent manufacturing, new materials, artificial intelligence, displays and display components, automotive electronics, etc.).

The above investors believe that the fund mainly invests in areas closely related to Xiaomi's business, such as mobile phones and smart automobiles. This is highly consistent with Xiaomi's strategic development direction in recent years. In addition, the fund's investments are also considered to be aimed at enhancing Xiaomi's automobile business's vertical integration capabilities, and the supply chain of Xiaomi's automobile can be guaranteed by investing in key automobile components and software systems.

Currently, Xiaomi's Smart Manufacturing Fund has invested in about 40 projects, including companies such as Suzhou Jionyi Electronic Technology and Hefei CSG Smart Science & Technology, involving new energy vehicles related fields such as chips, automotive electronics, artificial intelligence, new materials, etc.

A recent investment was in May this year, when Xiaomi's Smart Manufacturing Fund invested in Qingdao Yunlu New Energy Technology Co., Ltd., holding a 5.56% stake. The company is a high-tech enterprise that integrates electromagnetic component and new material research and development, manufacturing, sales, and service, and its product range covers various types of power frequency, high frequency inductors and transformers.

It can be seen that Xiaomi's Smart Manufacturing Fund has become an important investment platform for Xiaomi in the field of intelligent manufacturing, bringing more investment opportunities and returns to Xiaomi. Through this fund, Xiaomi will also be able to integrate industry resources, promote technological innovation and product upgrades in the field of intelligent manufacturing.