Analysis of Pre-IPO Share Sell-Off by Xiaomi-Related Shareholders of Aitech

Based on the information I have collected, here is a detailed analysis of the pre-IPO share sell-off by Xiaomi-related shareholders of Aitech:

(Wuhu Aitech Automotive Electronics Co., Ltd.) is an enterprise focusing on intelligent solutions for automotive electronics, mainly engaged in the R&D, production and sales of automotive electronic products in four functional domains: body domain, intelligent cockpit domain, powertrain domain and intelligent driving domain [1]. The company will be reviewed by the Listing Committee of the Shanghai Stock Exchange on January 20, 2026, and plans to raise RMB 1.5 billion for capacity expansion, R&D upgrading and supplementary working capital [2].

Prior to Aitech’s IPO, the “Xiaomi-related parties” held a total of

through three platforms [1]:

• Xiaomi Yangtze River Industrial Fund
  : 8.19%
• Hainan Jimu
  : 4.32%
• Xiaomi Intelligent Manufacturing
  : 1.56%

In addition, Chery Automobile holds 14.99% of the shares through Chery Co., Ltd., making it the largest shareholder; the Fosun Group holds approximately 1.26% of the shares [2].

In December 2024 (shortly before Aitech’s IPO), shareholders such as Xiaomi Yangtze River Fund and Fosun Fund signed share transfer agreements with Juyuan Mingling and Juyuan Zhenxin, transferring part of their held shares at a price of

[2].

• Xiaomi Yangtze River Fund
  : Sold off shares worth approximately
  RMB 15 million
  [2]
• Fosun Group
  : Sold off shares totaling approximately
  RMB 80.8623 million
  [2]

In its Prospectus, Aitech explained that the transferors “

” [2].

As financial investors, Xiaomi-related investment institutions typically have clear investment cycles and exit plans. Selling off shares before Aitech’s IPO allows them to:

• Lock in existing gains and avoid lock-up period restrictions after the IPO
• Secure profits and avoid risks of stock price fluctuations after listing
• Recover funds for other investment projects

[2]:

• The proportion of sales revenue from the largest customer, Chery Automobile, increased from 27.6% in 2022 to 53.89% in 2024, and still reached 50.26% in the first half of 2025
• Of the RMB 464 million revenue growth in 2024, Chery contributed RMB 811 million, accounting for a high 175%, while revenues from other major customers all declined
• This high-reliance model on a single customer (who is also a shareholder) poses significant operational risks

[2]:

• The proportion of accounts receivable from Chery increased from 34.09% in 2022 to 46.05% in 2024, reaching an amount of RMB 565 million in 2024
• If Chery’s operating conditions fluctuate, it may affect Aitech’s cash flow

• The current automotive electronics industry is highly competitive, and products face annual price reduction pressure
• Fluctuations in the prices of raw material chips affect gross profit margin
• The proportion of revenue from intelligent cockpit domain products fell from 36.11% to 25.63% in 2025, with growth slowing down [2]

Not only Xiaomi-related parties, but other shareholders of Aitech also conducted large-scale share sell-offs before the IPO [2]:

• Ruichuang Investment under Chery
  :
  • Transferred shares in June 2022 and received RMB 50 million
  • Transferred another 10.9% of shares in January 2024, selling off shares worth RMB 550 million
  • Sold off shares totaling approximately RMB 600 million in two transactions

• Controlling Shareholder Chen Zejian
  : Through platforms such as Wuhu Jiatai under his control, he transferred shares three times between May and October 2022, indirectly selling off shares totaling approximately RMB 193 million

• Profit Realization
  : Based on the approximately RMB 15 million sell-off amount, the Xiaomi Yangtze River Fund has achieved several times the investment return on the Aitech project
• Risk Avoidance
  : Successfully avoided the post-IPO lock-up period (usually 12 months) and potential price fluctuations after listing

• Equity Structure Optimization
  : Introduced new strategic investors and optimized the company’s governance structure
• Market Confidence
  : The concentrated share sell-off by the founding team and major shareholders may trigger the market to re-examine the company’s valuation

The pre-IPO share sell-off by Xiaomi-related shareholders of Aitech is a

, with the main reasons including:

1. Expiration of Investment Cycle
   : Chose to exit after reaching the expected investment return target
2. Risk Avoidance
   : The company has risk factors such as excessive customer concentration, so they locked in gains in advance
3. Capital Arrangements
   : Adjusted asset allocation according to the fund’s own capital needs

This type of share sell-off is relatively common in IPO projects, reflecting the rational decision-making logic of financial investors. For long-term investors, it is more important to pay attention to the company’s fundamental performance and growth potential after listing.

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[1] NetEase Finance - “Aitech IPO: Deeply Bound to Chery, Annual Price Reduction Risk Emerges, Raising Funds for Capacity Expansion Despite Declining Capacity Utilization” (https://www.163.com/dy/article/KJ7RF07005569L3G.html)
[2] Sohu Finance - “Aitech, Nurtured by Chery, Achieves RMB 3.5 Billion Annual Revenue and Files for IPO; Xiaomi and Fosun ‘Secure Profits’ Before Listing” (https://m.sohu.com/a/976900102_324659/)