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Huawei injects fresh capital into Shenzhen investment subsidiary as US-sanctioned tech giant returns to growth
- With the capital infusion, subsidiary Shenzhen Habo Technology Investment Partners raised its registered capital to US$1.1 billion
- That initiative could be a harbinger for Huawei’s increased pace of new investments this year, as the company’s sales rose in 2023
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Iris Dengin Shenzhen
Huawei Technologies’ venture capital arm, Habo Investment, has injected fresh capital into a subsidiary, as the US-sanctioned telecommunications equipment giant resumes growth on the back of rising demand for its 5G smartphones and artificial intelligence (AI) chips.
With that infusion, Shenzhen Habo Technology Investment Partners – established in 2021 by Huawei and Habo Investment – last Thursday raised its registered capital to 7.98 billion yuan (US$1.1 billion) from 7 billion yuan previously, according to data from Chinese business registry platform Tianyancha.
Huawei did not immediately respond to a request for comment on Monday.
Privately held Huawei’s latest capital-injection initiative could be a harbinger for an increased pace of new investments this year, after the company estimated that 2023 sales were up 9 per cent year on year to 700 billion yuan amid high demand for its new 5G smartphones and various efforts to diversify its revenue streams.
Venture capital arm Habo made only nine deals last year, compared to a peak of 37 different investments made in 2021, according to a recent report by Chinese consultancy ITJuzi.
Habo last year focused on sectors that include semiconductors, enterprise services and new materials, ITJuzi data showed. Its investee companies included electronic design automation software provider Peifengtunan and Open Valley, a firm that promotes enterprise adoption of Huawei’s self-developed HarmonyOS mobile operating system.
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