Aug 11, 2023

FILE PHOTO: Coins and banknotes of China's yuan are seen in this illustration picture taken February 24, 2022. REUTERS/Florence Lo/Illustration/File Photo 11 August, 2023 Polymer materials maker Zhongke Xingye has bagged $41.6 million in an extended Series C round, while Herocheer has bagged $27.7 million in a Series C round. Separately, Shanghai-listed Bright Oceans is eyeing an investment in catering software firm Hualala. Zhongke Xinye bags $41.6m in extended Series C round Zhongke Xingye High-tech Materials, which engages in the production of polymer materials, has secured 300 million yuan ($41.6 million) in an extended Series C round led by state-affiliated Wuxi Xishan Jintou New Materials Fund. The Meishan-based firm will use the proceeds to build its new manufacturing facility located in the city Wuxi, according to a company announcement on August 3. Founded in July 2006, the firm specialises in the production of Polyphenylene sulfide (PPS) materials that is widely used to make electrical components thanks to its good electrical insulation properties. The firm had sealed a Series C financing round led by Ocean Capital in December 2022. Local investors including CY Capital and Ever State Capital participated in the round. Harsom Group leads Herocheer’s Series C round Xiamen-based Herocheer, which provides personal identification solutions and hardware to the Chinese government and police, has snagged 200 million yuan ($27.7 million) in a Series C round. Shanghai Harsom Group, a local conglomerate that engages in a wide range of businesses including advanced materials, new energy, education, and AI technology application, led the round, according to a company announcement. The group has also invested in a total of 30 privately-owned firms, seven of which are currently listed via China’s main board market and Hong Kong, according to its website. Post-financing, Herocheer said it will expedite its timeline to go public but did not divulge any details. Founded in 2013, the firm previously sealed its Series B round led jointly by Hong Kong-listed CEC Optics Valley Holdings and CICC Capital. Bright Oceans to invest in Hualala Shanghai-listed Bright Oceans Inter-Telecom Corporation, which engages in the development and distribution of computer application systems, is looking to acquire a minority stake in local catering software firm Beijing Duolaidian Information Technology, also known by its brand name Hualala. The Shanghai-listed firm will inject a total of 250 million yuan ($34.8 million) in exchange for a 7.692% stake in Beijing Duolaidian Information Technology, according to a regulatory filing dated August 5. The news comes as a shot in the arm after Hualala has been embroiled in numerous accusations including delaying clients’ payments, and wage arrears. Bright Oceans Inter-Telecom said on August 5 that the firm received a letter from the Shanghai stock exchange, which requires the firm to disclose “all the major financial information” of Beijing Duolaidian Information Technology, including operating losses and cash flow, among others. In response to the letter, Bright Oceans Inter-Telecom said that it was aware of the “negative sentiments” online targeting the Beijing-based firm, adding that it will be cautious when moving the transaction forward. Founded in 2011, Hualala covers one-stop hardware and software solutions including restaurant management system, customer relationship management, and supply chain management.