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The following article comes from Venture Capital Daily, written by Ao Jin.

Venture Capital Daily.

The products of Cailian and science and technology innovation board Daily focus on PE/VC, industrial funds, etc., reveal the capital code behind the changes of numbers/figures, and provide authoritative and professional information and services in the capital field.

Full text abstract

Shenzhen Shishi Creative Electronics Co., Ltd., a storage module manufacturer, announced the completion of the B round of strategic financing of over 340 million yuan, which was led by Xiaomi Production and Investment, and Xiaomi Eco-chain Company’s power will follow in the future. Since the beginning of this year, there have been more than 20 investment and financing incidents in the storage field, involving enterprises such as Zhenzhen Storage, Yuxin Semiconductor, Kuhan Technology, Kangxinwei and Dapuwei. Among them, many projects involve the research and development of main control chips.

Reporter | Ao Jin

The investment map of Xiaomi chip has expanded again.

Recently, Shenzhen Time Creative Electronics Co., Ltd. (hereinafter referred to as "Time Creative"), a manufacturer of storage modules, announced the completion of the B round of strategic financing of over 340 million yuan, which was led by Xiaomi Production and Investment, and many upstream and downstream enterprises and institutions in the future industrial chain followed suit.

It is worth mentioning that the future of power is also related to Xiaomi, and it is the parent company of Qingmi Technology, a Xiaomi ecological chain enterprise.

Creative people told the reporter of Venture Capital Daily that the current valuation level of creativity is not too high. "Xiaomi, as one of the brands of the downstream terminal head, will also have a greater say in investment and cooperation."

The reporter of Venture Capital Daily noticed that Xiaomi’s production and investment is the main semiconductor investment platform of Xiaomi. According to the data of Cailian Venture Capital, among the 109 projects it has invested, the projects in the semiconductor field account for the majority; Of the 21 projects that have been listed at present, more than 70% belong to semiconductor tracks, including Nanxin Technology, Diowei and Ankaiwei.

However, since the beginning of this year, of the eight projects launched by Xiaomi Production and Investment Co., Ltd., only the creativity belongs to the semiconductor field project, and the rest belong to the robot industry chain and the lithium battery industry chain respectively.

Memory module manufacturer who started from toy OEM.

Founded in 2008, Shichuang Creative was the earliest toy OEM, and began to enter the storage industry in 2013.

In June, 2022, Shi Creativity started external equity financing, and Angel Wheel introduced the investor. Since the beginning of this year, the planning of creative capital has been accelerated. Up to now, two rounds of financing have been completed. In addition to the latest round of financing, it completed a round of financing in May this year and obtained capital contribution from Hefei Investment Group.

According to official website, at present, it has the capability of chip design, software and firmware research and development, package testing, module production testing and application in the field of memory chips, and its products and business cover embedded memory chips, SSD solid state drives, DRAM memory modules, enterprise SSD solid state drives, enterprise DRAM memory modules and mobile storage products.

From the perspective of the memory industry chain, Timecreativity belongs to memory module manufacturers. The business model of such manufacturers is to convert standardized memory wafers into customized memory products, and the downstream is facing terminal electronic products customers.

Some investors in the semiconductor field once told the Venture Capital Daily reporter, "Most people in the industry will think that module manufacturers are biased towards integration and processing, with low technical threshold and lack of added value. Therefore, the market value, valuation and profitability of such companies are generally not too high, and their growth will be discounted. However, compared with the more difficult main control chip, selling module products will be realized faster. "

At present, Shi Creativity is also increasing its investment in research and development. According to the data released by the creative side, in 2022, the company’s R&D investment was 75 million yuan, an increase of 14 times compared with 2016.

In March this year, the Shenzhen Municipal Development and Reform Commission issued the List of Major Projects in Shenzhen in 2023, among which the innovative storage integrated circuit industrial base projects were among them. According to public information, the storage integrated circuit industrial base covers an area of 66,000 square meters and is expected to be completed by the end of 2024.

In May this year, Wang Tianyi, director of creative products, said in an interview with the media that "the company’s current revenue scale has reached 2 billion yuan, and now it is actively preparing for listing, hoping to become bigger and stronger with the help of the power of the capital market."

On the afternoon of 11th, the reporter of Venture Capital Daily called creatively to learn more about this financing, but received no response.

Storage product price bottoming callback

Since the third quarter, the storage industry has shown signs of bottoming out.

In terms of listed companies in the secondary market, Jiang Bolong’s third-quarter report showed that it realized an operating income of 2.872 billion yuan, a year-on-year increase of 66.62%; The net profit of returning to the mother was-287 million yuan, and the amount of net profit loss narrowed by 9.05% from the previous month. At the same time, its gross profit margin rebounded to 5% in the third quarter, an increase from the second quarter.

It is worth mentioning that Jiang Bolong also made a wave of acquisitions this year. First, it was announced in June that it planned to purchase 81% equity of SMART Brazil and its subsidiaries to further expand the local market; Then, in September, it disclosed the progress of the proposed purchase of 70% equity of Chengcheng Technology (Suzhou) Co., Ltd.

In terms of share price, since the beginning of this year, Jiang Bolong’s share price has fluctuated higher, and fell after reaching a high level in the second quarter, but then climbed again in the third quarter. As of the close of the 10th, Jiang Bolong’s share price was 103.13 yuan/share, up 0.57% in the day, and its current total market value was 42.579 billion yuan.

Baiwei Storage still handed over the transcripts of huge losses. The third quarterly report shows that during the reporting period, the company achieved revenue of 974 million yuan, a year-on-year increase of 2.161 billion yuan; The net profit of returning to the mother was-188 million yuan, a sharp drop of 807.25% year-on-year.

Baiwei Storage’s share price has also shown a trend of volatility since this year. As of the close of the 10th, its share price was 66.27 yuan/share, up 6.58% in the day, with a total market value of 28.518 billion yuan.

Netac technology also showed a similar trend in performance and stock price. The third quarterly report shows that Netac Technology achieved revenue of 328 million yuan during the reporting period, down 32.52% year-on-year; The net profit returned to the mother was-16,668,600 yuan, a sharp drop of -200.26% year-on-year. As of the close of the 10th, Netac’s share price was 38.98 yuan/share, up 4.42% in the day, with a total market value of 7.812 billion yuan.

In the primary market, the data of Cailian Venture Capital shows that since the beginning of this year, there have been more than 20 investment and financing incidents in the storage field, involving enterprises such as Zhenzhen Storage, Yuxin Semiconductor, Kuhan Technology, Kangxinwei and Dapuwei.

The reporter of Venture Capital Daily noticed that many of the projects that received financing this year involved the research and development of main control chips. The above investors told reporters that the main control chip is one of the core links of the memory module, and the main control chip manufacturers usually have higher gross profit margin.

Generally speaking, among the institutions that took the shot this year, it is rare to see the head institutions take the shot. The above-mentioned investors said, "The current storage market has not fully recovered, and the recent IPOs are in a state of tightening. The window period has passed, and it is actually more difficult for ordinary module manufacturers to get the attention of employers."

END

Special statement: The content of this article is for reference only and does not constitute investment advice. Investors operate at their own risk.

Judges of MIF (Magic Fruit Innovation Award)

The next big thing will come out of cars, energy and artificial intelligence.

[Qiming Venture Capital Wang Shiyu] Innovation should be in line with the scene, and sustainable growth has become the core element.

The combination of industry and technology is the inevitable path to realize the innovation value.

[Chen Linhua, a joint venture] Looking for opportunities for innovation in a certain market

[Zhongyuan Capital Chen Weijia] Innovation is to create incremental value to better meet consumer demand.

[Jiahua Capital Song Xiangqian] The consumption prospect remains unchanged. Innovation is the underlying growth logic of enterprises.

[Songhe Capital Luo Fei] Investing in innovation actually invests in the replacement of old and new industries.

[Aussie Capital Hu Yan] Venture capital institutions should return to the real source.

[Shenzhen Venture Capital Chen Nan] The big track will generate big innovation opportunities.

[Gao Yan Venture Capital Li Yan] Innovation needs both technology drive and industrialization path.

[Red Dot China Liu Lan] Investing in awe-inspiring products and technologies is a magic weapon for startups.

[Huaying Capital Wang Weiwei] Entrepreneurs should precipitate dividends into company advantages

[Country Garden Venture Capital Niu Ruolei] Continue to pay attention to innovative enterprises with high originality on the new track.

[Sequoia China Su Kai] Pay attention to innovative enterprises in technology and mode.

……

Connected investor

[Co-Chairman of Fosun Chuangfu: Xu Xin] A technology investor with a deep industrial background.

[Founding Partner of Living Water Capital: Xu Lejia] Explorer of Southeast Asia Venture Capital Circle

[Chairman of Hanli Capital: Qian Xuefeng] Senior angel investor and founder of A Round School.

[Dingxing Quantum Founder: Jin Yuhang] Senior investor in ToB field of new energy and new materials in Chengdu.

[Partner of Langsheng Investment: Li Jia] An early investor who was born in scientific research and served hundreds of biomedical enterprises.

[Cornerstone Capital Partner: Yang Shengjun] A hard technology investor with a deep industrial background

[Managing Director of Source Capital: Wang Yong] The "discoverer" of intelligent manufacturing and clean energy.

[Partner of Lanchi Venture Capital: Chen Weiguang] An early investor in the new economy

……

Previous reports of Venture Capital Daily involve venture capital institutions.

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Original title: "Xiaomi, Hefei production and investment have all invested in creativity! Revealing the storage industry ecology behind it "

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