Huawei and its subsidiary Hubble Technology Investment invested a total of 200 million yuan and became two of the limited partners (LPs) of the Shenzhen Hongtu Shanli Private Equity Investment Fund Partnership, which was established on Aug. 12 this year, according to Chinese enterprise information query site TianYanCha.
Among them, Huawei Technologies subscribed to 190 million yuan, holding 31.67% of shares as the second-largest shareholder of Hongtu Shanli. Hubble Investment subscribed to 10 million yuan, holding 1.67% of shares as the fourth-largest shareholder.
Three other investors include Shenzhen Government Guiding FOF, which contributes the most, accounting for 49% of the company’s shares, Beijing Jianxin Benyuan Emerging Equity Investment Management Center, and Shenzhen Luohu Hongtu Venture Capital Management Co., Ltd., the wholly-owned subsidiary of Shenzhen Capital Group, the largest domestic venture capital institution in China and the fund manager of Hongtu Shanli, according to the public information.
Hongtu Shanli’s investment preference has not yet been clarified, however, considering Huawei’s predicament of the out-of-stock chips, business insiders believe there is a high probability that the investment is expected to be related to the semiconductor industry, Pedaily reported.
Pandaily reported earlier that Huawei‘s consumer business group CEO Richard Yu said earlier this month that the company will ditch Kirin chipsets after Sep. 15, and the Huawei Mate 40 will be the last Huawei phone equipped with Kirin chips. The decision is thought to be an aftermath of the tightened US restrictions on Huawei’s access to chips.
Huawei has made frequent investments through Hubble Investment, which was established in April 2019, with a total amount of 700 million yuan. In January 2020, Huawei increased the registered capital of Hubble Investment to 1.7 billion yuan, according to Pedaily.
Hubble has intensively invested in at least 14 companies in the semiconductor industry chain in more than a year, with a cumulative investment of over 200 million yuan, Pedaily reported.
Huawei’s investment is not for financial investment purposes, but the starting point for its industrial ecological layout, Pedaily reported, citing a high-profile source familiar with Huawei.