TMTPOST – Lifan Technology Group Co., Ltd. announced on Monday that it has appointed Yin Qi, the co-founder and CEO of a China-based AI unicorn Megvii Technology, as the chairman of its board. Yin ’ s term will begin immediately and last until the end of the sixth board's tenure.
The move follows recent developments indicating that Megvii ’ s application for an IPO on Shanghai ’ s STAR Market may be halted. After an unsuccessful attempt to list in Hong Kong in 2019, Megvii pivoted to the STAR Market, but its IPO application has now been pending for over 1,340 days, with its last financial disclosure dating back to 2021.
Meanwhile, Megvii recently changed its legal representative from Yin to fellow co-founder Tang Wenbin, suggesting a shift in leadership as Yin steps into his role at Lifan.
Yin, 36, is an AI industry leader and holds degrees in computer science from Tsinghua University and Columbia University. In 2011, he co-founded Megvii with classmates Tang Wenbin and Yang Mu, which grew to one of China ’ s "Four Little Dragons in AI".
Megvii has since completed nine funding rounds, raising close to 10 billion yuan ( $1.37 billion ) in total, with major investors like Ant Group and Alibaba owning a combined 29.41% stake. Other investors include Foxconn and Lenovo, though some have adjusted holdings due to changes in Megvii ’ s VIE structure.
After filing for an IPO in Hong Kong in 2019, Megvii withdrew its application in 2020. In 2021, the company set its sights on the STAR Market in Shanghai, although financial losses among AI firms have stoked investor concerns.
Megvii reported revenues of 8.54 billion yuan in 2018, 12.6 billion yuan in 2019, and 13.91 billion yuan in 2020, but substantial losses over the same period, with a cumulative deficit exceeding 14.6 billion yuan. Megvii attributes the losses to substantial R&D investments and fair-value accounting for preferred shares.
In July, Lifan announced that Geely Technology Group, a major shareholder with a 5% stake, would sell its shares to a company controlled by Yin, making Yin the second-largest shareholder of Lifan Technology.
In October, Lifan ’ s board approved Yin ’ s nomination as a non-independent director, and in November, he was appointed chairman and legal representative.
Sources familiar with the matter told AsianFin that Megvii is poised to enter the smart automotive sector as part of its software-hardware integration strategy. Megvii has already developed expertise in sensor and robotics technology, laying the groundwork for expanding into smart vehicle applications. The company considers smart vehicles a significant potential market for AI, positioning Megvii to leverage its technological capabilities in the automotive space.
With Shanghai Stock Exchange regulations prohibiting Yin from simultaneously chairing both Megvii and Lifan, Megvii has reportedly initiated the withdrawal of its IPO application on the STAR Market. Yin is expected to lead Lifan from its headquarters in Chongqing, focusing on the company's transformation and strategic alignment with AI and smart technology sectors.
