Two events happened in the same week.
On July 13th, Hefei Industrial Investment Xingzhi Xinyu Equity Investment Partnership Enterprise, with a subscribed capital of 5 billion yuan, was established. Three days later, Changxin Technology initiated its online and offline subscription, with an issue price of 8.66 yuan per share, raising an estimated total of about 57.9 billion yuan.
What connects these two events is Hefei Industrial Investment Group behind them.
On Changxin Technology's shareholder roster, Hefei Industrial Investment Group holds shares directly through its wholly-owned subsidiary, Changxin Integration; the execution partner and two LPs of the newly established 5-billion-yuan fund also belong to the Hefei Industrial Investment system.
This reveals the following scene: At the time of Changxin's IPO, Hefei Industrial Investment Group has set up a new 5-billion-yuan fund, stockpiling ammunition for the next round of industrial investment.
Hefei State Capital, 5-Billion-Yuan Fund
Hefei Industrial Investment Group was established in 2015, formed by the consolidation of Hefei State-owned Assets Holding Co., Ltd. and Hefei Industrial Investment Holding Co., Ltd. Unlike ordinary VCs, it is a state-owned capital investment platform positioned for industrial investment, financing, and innovation promotion.
Hefei Industrial Investment Group's toolbox is not limited to funds. It directly holds shares in Changxin Technology through its wholly-owned subsidiary Changxin Integration, and has also participated in investing in and constructing Changxin's 12-inch memory wafer manufacturing base.
On the fund side, Hefei Industrial Investment Group manages provincial-level mother funds such as the New Materials Fund, Life and Health Fund, Aerospace Information Fund, and Seed Fund Phase II, participates in operating the Hefei Municipal Government Guidance Fund and the City's Venture Capital Guidance Fund, and simultaneously deploys seed, angel, and market-oriented funds. According to data disclosed on its website, its self-managed fund size has exceeded 100 billion yuan, investing in nearly a thousand enterprises, with dozens of projects achieving IPO or backdoor listing.
The full name of this newly established fund is Hefei Industrial Investment Xingzhi Xinyu Equity Investment Partnership Enterprise, with a subscribed capital contribution of 5 billion yuan.
According to business registration information, the fund manager and execution partner is Hefei Industrial Investment Capital Venture Capital Management Co., Ltd. The two main LPs are Hefei Venture Capital Guidance Fund Co., Ltd. and Hefei State-owned Assets Holding Co., Ltd., all three of which belong to the Hefei Industrial Investment system.
After Changxin
Changxin Technology is a key to understanding this 5-billion-yuan fund.
In 2016, Zhu Yiming planned to enter the DRAM field. This industry has high technical barriers and long investment cycles, with a single wafer production line requiring tens of billions of yuan in capital. Ordinary VCs find it difficult to endure such prolonged losses and heavy asset investments.
Hefei state capital took on this project.
Ten years later, Changxin Technology has become a leading domestic DRAM company. Before the IPO, the company's largest shareholder, Qinghui Jidian, held 21.67%, and the second largest shareholder, Changxin Integration, held 11.71%. Among them, Changxin Integration belongs to the Hefei Industrial Investment system and also holds a 48.90% property share in Qinghui Jidian.
Calculated statically based on the 8.66 yuan issue price, the approximately 7.048 billion shares directly held by Changxin Integration theoretically correspond to a value of about 61 billion yuan; its property share held through Qinghui Jidian roughly corresponds to a value of about 55.2 billion yuan. The combined total is approximately 116.2 billion yuan.
The early "Hefei Model" often involved concentrating funds to support single major industrial projects through critical development stages. BOE needed a panel production line, NIO needed cash flow, Changxin needed long-term wafer manufacturing investment—the investment targets were clear, and funds were highly concentrated.
However, the other side of long-cycle investment is capital pressure.
Hefei Industrial Investment Group's latest bond prospectus shows that as of the end of March 2026, the group's net assets were 64.788 billion yuan, liabilities about 99.476 billion yuan, with an asset-liability ratio of 60.56%. In 2025, the net profit after deducting non-recurring gains and losses was -2.169 billion yuan, and profitability heavily relied on investment income and fair value changes. Over the past three years, the group's cash flow from investing activities has been continuously negative, with about -9.407 billion yuan in 2025. Its external guarantees are also mainly concentrated on Changxin Technology.
Perhaps, the new strategy is written in "654X".
In 2026, Hefei is constructing a "654X" industrial system: Six leading industries include intelligent connected new energy vehicles, new-generation information technology, new energy, new materials, smart home appliances, and high-end equipment; Five emerging industries include artificial intelligence, low-altitude economy, commercial aerospace, safety and emergency, biopharmaceuticals, and high-end medical devices; Four future industries are quantum technology, nuclear fusion and hydrogen energy, bio-manufacturing, and embodied intelligence. Additionally, it will track and layout new frontiers like brain-computer interfaces, 6G, deep space, and deep sea.
Compared with the concentrated funds used to introduce a single anchor company ten years ago, the industrial landscape Hefei faces now is more diversified. Currently, the quantum technology, nuclear fusion, commercial aerospace, bio-manufacturing, and embodied intelligence that Hefei hopes to cultivate are still at different stages of technology and commercialization. They may not immediately produce the next Changxin.
Changxin is about to go public, and the new 5-billion-yuan fund has just been established. A metaphor lies within: One project is about to be handed in, and the next round of investment has already begun.
This article is from the WeChat public account "Decoding LP," author: Chen Jia
