Meizu received a financial injection from an investment fund in Zhuhai Municipality

  Meizu MY+
Meizu received a financial injection from an investment fund in Zhuhai Municipality

Yesterday, Chinese websites wrote that Meizu is undergoing management changes after a new round of funding. Today, the Chinese smartphone maker officially confirmed funding from the Zhuhai Municipal Fund. However, he denied that there had been significant changes in the company’s management.

Huáng Zhāng (aka Jack Wong), founder and CEO of Meizu, remains the company’s largest shareholder and controller. The Zhuhai Fund will receive a seat on the board of directors. The exact amount invested by the municipality is not mentioned, but some time ago there was speculation about 100 million yuan, which is equivalent to about 14.5 million dollars.

Zhuhai funding is not a big surprise, as the city is very supportive of its technology industry. According to previous reports, Zhuhai plans to invest about 70 million yuan a year over the next three years to expand and strengthen existing as well as emerging industries in 5G, information security, artificial intelligence and more.

Also, this is not the first case in which the state financially supports a smartphone manufacturer. In 2017 Chengdu municipal fund invests about $135 million in Smartisan. Although this has helped the company maintain its business, it is still struggling to survive. Smartisan definitely produces innovative phones, but it is not yet possible in this highly competitive market.

Going back in time, let’s remember that AliBaba is also an investor in the Zhuhai based company, and with a considerable amount. In 2015, the Chinese e-commerce giant invested $590 million in Meizu.

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