Xiaomi Invests 2 Billion Yuan in Establishing Corporate Management Company in Wuhan

xiaomi
(Source: Xiaomi)

On Monday, business registration information suggested that Wuhan Yibayiling Corporate Management Co., Ltd. was established with a registered capital of 2 billion yuan ($313.5 million). Its legal representative is Alain Lam, and its business scope includes enterprise management, enterprise management consulting, and information consulting services. Shareholder information indicates this company is wholly owned by Xiaomi Corporation.

Regarding the investment, Xiaomi said it was for strengthening business, and is focused on driving Xiaomi‘s business development. Besides, Lei Jun, the founder and chairman of Xiaomi, is an outstanding angel investor with a keen sense of investment and vision. Lei has excellent performance in entrepreneurship and investment before he founded Xiaomi.

Earlier, Xiaomi announced its financial report for the third quarter of this year on November 23. According to the report, as of the end of the third quarter, Xiaomi had invested in more than 360 companies, and its total carrying amount is 59.1 billion yuan. Impacted by global environment and the weakening of market expectation in China’s technology industry in Q3, the long-term investments held by Xiaomi at fair value through profit or loss for the period incurred a loss, including an unrealized financial loss of 3.5 billion yuan for the listed part, partially offset by an increase in the valuation of the unlisted company.

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The financial report also indicates that the fair value of Xiaomi‘s investment in profit or loss at fair value fell 1. 976 billion yuan in Q3, compared with 3.417 billion yuan in the same period last year and 4.165 billion yuan in Q2 this year. In contrast, Xiaomi recorded a positive return of 45 million yuan in Q3, compared with a loss of 10 million yuan in the same period last year and 26 million yuan in Q2.