Purple Light Zhanrui’s 15 Billion Action

Recently, it was reported that Ziguang Zhanrui is seeking a new round of financing, with the company planning to raise 10 billion yuan and a valuation of approximately 70 billion yuan.
The report also stated that Ziguang Zhanrui has approached several investment funds with the goal of finalizing the investor list by mid March and completing this round of financing by the end of June, ultimately listing in China.

It is worth noting that at the Purple Light Exhibition Rui 2023 Investor Exchange Conference held on February 8th, Purple Light Exhibition Rui announced that it would achieve a revenue of 14 billion yuan in 2022, a 20% growth against the trend, and also announced the company’s official launch of a new round of equity financing. However, the final list of investors regarding financing at this meeting has not yet been determined.
Regarding the tens of billions of yuan financing plan for online transmission, Ziguang Zhanrui told the media, “This financing is mainly aimed at market-oriented investment institutions, and the financing scale is planned to not exceed 15 billion yuan. The recruitment of funds will serve the company’s development strategy, and on the basis of consolidating and improving existing mobile phone and IoT businesses, further expanding emerging fields such as automotive electronics and intelligent displays
The restructuring of the group is finalized, and Ziguang Zhanrui accelerates its IPO
As is well known, on July 11th last year, Ziguang Group successfully completed the registration procedures for the company’s equity and new directors, supervisors, and general managers. Two original shareholders, Tsinghua Holdings Co., Ltd. and Beijing Jiankun Investment Group Co., Ltd., all withdrew, and the strategic investor, Beijing Zhiguangxin Holdings Co., Ltd., established by the “Zhilu Jianguang Joint Venture”, took over 100% of the equity of Ziguang Group, The successful completion of the delivery of the equity of Ziguang Group marks the comprehensive conclusion of the judicial restructuring and execution phase, and Ziguang Group has entered a new stage of development.
The restructuring and landing of Ziguang Group has attracted so much attention from the industry, not only because Ziguang Group and its subsidiaries play a crucial role in communication, technology, and other fields, but also because its subsidiary, Ziguang Zhanrui, is one of the few “dark horse” companies in China that can launch self-developed mobile phone SoCs at present. Affected by the restructuring of Ziguang Group, the listing process of Ziguang Zhanrui has also been adjusted accordingly.
According to public information, after rumors of going public in 2019, a pre IPO financing of 5 billion yuan in 2020, a financing of 5.35 billion yuan in April 2021, and rumors of ongoing equity optimization before going public, the major shareholder of Ziguang Zhanrui is Beijing Ziguang Zhanxun Investment Management Co., Ltd., with a shareholding ratio of 35.23%, and National Integrated Circuit Industry Fund Co., Ltd. holds 13.96%, Intel (China) Co., Ltd. holds 11.87%, while the rest are held by various types of capital.
Since the completion of the previous round of financing, the valuation of Ziguang Zhanrui is approximately 62 billion yuan. If the new round of financing can be successfully completed, Zhanrui’s valuation will not be less than 62 billion yuan, or is expected to exceed 70 billion yuan.
One of the three 5G chip companies in the global open market
As a core mobile phone chip design company in China, the development of Ziguang Zhanrui has always been highly anticipated. Especially since Haisi chips cannot continue mass production due to some well-known reasons, domestic consumers have started to worry about the future of domestically produced 5G chips.
At present, the only 5G chip supplier in the open market of Chinese Mainland is Unisplendor, which is also one of the three 5G chip companies in the global open market (Qualcomm, MediaTek, Unisplendor), and one of the few companies in the world that fully master the full scene communication technologies such as 2G/3G/4G/5G, Wi Fi, Bluetooth, TV FM, satellite communications, etc.
Before 2018, Ziguang Zhanrui focused on the consumer electronics business, and only at the end of 2018 did it establish the Industrial Electronics Business Department to explore the To B business. In January 2019, while the first 5G chip of Ziguang Zhanrui was successfully streamed, it also implemented business BU transformation, establishing three BUs: intelligent terminal BU, communication BU, and universal connection BU, and establishing two major business units: consumer electronics and industrial electronics. In April 2021, Ziguang Zhanrui upgraded the mobile communication chip of Huben brand to the new 5G brand Tanggula.
In the consumer electronics business, a product line layout has been formed in four major areas: 5G, 4G, intelligent wearable, and functional machines;
In the industrial electronics business, there have been three major product line layouts in the fields of 5G IoT chips, NB IoT IoT chips, and LTE Cat. 1 IoT chips.
And Ziguang Zhanrui has also launched its self-developed SoC since the 2G era, and in the 5G era, they also simultaneously launched self-developed 5G chips and applied them to some brand products. It is understood that in addition to telecommunications, well-known domestic manufacturers such as ZTE and Hisense are also 5G customers of Ziguang Zhanrui, and the company has over 100 5G commercial terminals under its umbrella.
The author noticed that at a recent investor exchange meeting, Ren Qiwei, CEO of Ziguang Zhanrui, mentioned that in 2022, due to the impact of international situation, market downturn, and industry cycle, the shipment and price of smart machine chips are under pressure. Ziguang Zhanrui has withstood great challenges in various aspects, achieved a revenue target of 14 billion yuan, and increased by 20% against the trend. In 2022, Zhanrui achieved mass production and shipment of the second generation 5G SoC, and new products were produced in fields such as automotive electronics and the Internet of Things.
Although the timing of Zhanrui’s next IPO is not yet known, the recent equity financing actions will undoubtedly accelerate this process.https://www.stoneitech.com/