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.
https://www.dealstreetasia.com/stories/chinas-huaqin-series-b-round-166729/
China’s Companies Binged on Debt. Now They Can’t Pay the Bill. Rising bond defaults raise new questions about whether Beijing can effectively address its huge debt problem.
Chinese companies owe hundreds of billions of dollars in debt that is coming due over the next two years, including more than $200 billion owed to lenders and investors around the globe.
While most of the lending comes from banks, Chinese borrowers have increasingly turned to the bond market to get money they need to run their businesses. Now the bill is coming due.
According to S&P Global, Chinese companies must pay back $90 billion in debt denominated in American dollars, meaning the lenders are global companies and investors outside China. In 2021, an additional $110 billion will come due.
At home, Chinese companies will have to pay $694.6 billion to bondholders next year and $706 billion in 2021.
https://www.nytimes.com/2019/12/12/business/china-default.html