Chinese original design manufacturer (ODM) of intelligent communication terminals Huaqin Communication Technology has secured over 1 billion yuan ($142 million) in a Series B round of financing.
Investors in the Series B round include Qualcomm Ventures, the investment platform of US semiconductor giant Qualcomm, and Intel Capital, the investment arm of Qualcomm’s fellow Intel Corporation, according to a statement on late Thursday.
The new investment is also backed by a group of Chinese investment companies including Beijing-based SinoKing Capital, private equity firm Wise Road Capital, and SummitView Capital, which specializes in investments in advanced manufacturing, precision medicine, and information industries.
Shanghai-listed new industry property developer Zhangjiang Hi-Tech, CMB International, a financial service unit of China Merchants Bank and Chinese securities brokerage firm CMSC also poured money in the new round.
Huaqin, founded in August 2005 and headquartered in Shanghai, specialises in the R&D and design of multi-category intelligent communication terminals, including smartphones, tablets, laptops, smartwatches, servers, automotive electronics, and other internet of things (IoT) products.
The company claims to serve over 80 operators across more than 100 countries and regions in China, Latin America, the US and Europe. It operates research and development centres in Chinese cities like Xi’an, Wuxi, Dongguan and Nanchang, as well as production bases around the world.
The company booked 30.8 billion yuan ($4.39 billion) in revenue in 2018 and is expected to reach about 36 billion yuan ($5.13 billion) in revenue this year. It boasted an over 100 per cent growth in the laptop business, while its smartwatch delivery more than tripled in 2019, according to the statement.
Proceeds of the new round will be used to further enhance the R&D of intelligent communication terminals, promoting the application of products powered by AI, 5G and IoT.
Huaqin agreed to sell about 0.96 per cent stake to Haocheng Venture Capital, a wholly-owned affiliate of Zhangjiang Hi-Tech, for 150 million yuan ($21 million), the parent company disclosed in a filing with the Shanghai stock exchange on October 9.
Before the equity investment, Huaqin closed 870 million yuan ($124 million) in a Series A round in December 2017. The previous round was led by Intel Capital and Beijing-based Hua Capital Management, which primarily invests in the integrated circuit field, with participation from SinoKing Capital, SummitView Capital, global venture capital firm Walden International, and Chinese early-stage investment firm Northern Light Venture Capital, among others.