Huawei injects fresh capital into Shenzhen investment subsidiary as US-sanctioned tech giant returns to growth

by Nagoor Vali March 18, 2024

written by Nagoor Vali March 18, 2024

With that infusion, Shenzhen Habo Expertise Funding Companions – established in 2021 by Huawei and Habo Funding – final Thursday raised its registered capital to 7.98 billion yuan (US$1.1 billion) from 7 billion yuan beforehand, in accordance with knowledge from Chinese language enterprise registry platform Tianyancha.

Huawei didn’t instantly reply to a request for touch upon Monday.

Privately held Huawei’s newest capital-injection initiative may very well be a harbinger for an elevated tempo of latest investments this yr, after the corporate estimated that 2023 gross sales have been up 9 per cent yr on yr to 700 billion yuan amid excessive demand for its new 5G smartphones and varied efforts to diversify its income streams.

An undated file photo shows signage for Huawei Technologies and venture capital arm Habo Investment. Photo: SCMP — An undated file picture exhibits signage for Huawei Applied sciences and enterprise capital arm Habo Funding. Picture: SCMP

Enterprise capital arm Habo made solely 9 offers final yr, in comparison with a peak of 37 totally different investments made in 2021, in accordance with a current report by Chinese language consultancy ITJuzi.

Habo final yr centered on sectors that embrace semiconductors, enterprise providers and new supplies, ITJuzi knowledge confirmed. Its investee corporations included digital design automation software program supplier Peifengtunan and Open Valley, a agency that promotes enterprise adoption of Huawei’s self-developed HarmonyOS cell working system.

On the finish of final yr, Habo had made a complete of 97 investments that primarily coated start-ups within the semiconductor trade, in accordance with ITJuzi knowledge. Its deal-making efforts have widened to incorporate enterprise providers and medical know-how.

Huawei sees 9 per cent gross sales development in 2023, boosted by Mate 60 Professional 5G comeback

Almost 4 out of 5 offers by Habo have been within the superior manufacturing trade. One in all its investee start-ups, photoresist firm Fuyang Xinyihua Materials Expertise, turned a unicorn with a valuation of greater than US$1 billion.

Huawei has been driving excessive on its comeback within the high-end 5G handset market after final yr’s launch of the Mate 60 Professional, which is powered by a home-grown superior processor, the Kirin 9000s.

The Shenzhen-based firm’s AI chip, the Ascend 910B, has emerged as a substitute for US agency Nvidia’s sought-after A100 graphics processing unit, which is banned for export to China.

Complete investments made by web giants Alibaba, Tencent and Baidu plunged by practically 40 per cent yr on yr to 102 offers in 2023, ITJuzi knowledge confirmed. Alibaba owns the South China Morning Put up.

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