Aug 09, 2024 06:15 PM

Tech Roundup: China-Backed Firm Offloads Stake in Sensitive U.S. Business, Xiaomi-Invested Chipmaker Dives in Debut

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A microchip developed by Black Sesame Technologies sits on display on Nov. 17 at an auto show in Guangzhou, South China’s Guangdong province. Photo: VCG

Welcome to the Tech Roundup — a briefing of the top technology news making headlines in China and the rest of Asia.

China-backed investment firm offloads stake in sensitive U.S. business,

Apollo Future Mobility Group Ltd., a Hong Kong-traded investment company with China backing, announced the sale of its holding in an American 3D printing company over concerns about U.S. national security scrutiny.

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Apollo Future Mobility sold its 12.87% stake in Divergent Technologies due to U.S. national security concerns, resulting in a HK$106 million ($13.6 million) loss.
Black Sesame International's shares tumbled 35% on debut, closing down 27%, impacting Hong Kong's tech listing ambitions.
Tesla will issue a software fix to 1.6 million cars in China for a hood latch issue, and XPeng Aeroht secured $150 million to commence flying car mass production.

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Who’s Who

Apollo Future Mobility Group Ltd.: Apollo Future Mobility Group Ltd. is a Hong Kong-traded investment company backed by China. It announced the sale of its entire 12.87% stake in the American 3D printing company Divergent Technologies due to U.S. national security concerns. The divestment is expected to result in a loss of HK$106 million ($13.6 million) for Apollo, as Divergent needed to comply with U.S. foreign ownership regulations to obtain classified defense contracts.

Divergent Technologies: Divergent Technologies is a U.S.-based 3D printing company that faced ownership issues due to foreign investment limits set by U.S. regulations. Apollo Future Mobility, a China-backed firm, announced the sale of its 12.87% stake in Divergent due to concerns about U.S. national security scrutiny. This divestment was necessary for Divergent to obtain U.S. classified defense contracts.

Black Sesame International Holding Ltd.: Black Sesame International Holding Ltd., an AI chipmaker backed by Xiaomi Corp., saw its shares tumble as much as 35% on their debut on the Hong Kong Stock Exchange, closing down 27%. The company's IPO, priced at HK$28, raised HK$1.04 billion. This debut occurred amidst a market downturn affecting AI stocks.

Xiaomi Corp.: Xiaomi Corp. is involved in the technology sector, backing AI chipmaker Black Sesame International Holding Ltd. Shares of Black Sesame tumbled as much as 35% on their debut on the Hong Kong Stock Exchange, a significant blow to Hong Kong’s tech listings, with shares closing down 27%.

Tesla Inc.: Tesla Inc. is releasing a software update to address a latch assembly issue in over 1.6 million cars sold in China, including Model S, Model X, Model 3, and Model Y vehicles, manufactured between October 2020 and July 2024. The update resolves a safety hazard where an unlocked front hood could fly open while driving. Tesla will contact motorists if a software fix isn't possible for alternative repair options.

Mercedes-Benz AG: Mercedes-Benz AG has received approval to test advanced Level 4 autonomous driving capabilities on Beijing's highways and urban roads. This makes it the first international auto brand permitted to conduct such trials in Beijing, covering maneuvers like parking, reversing, and turning left in busy traffic without driver intervention.

XPeng Aeroht: XPeng Aeroht, the flying car unit of XPeng Inc., secured $150 million in a new funding round aimed at starting mass production. The financing, coordinated by the Guangzhou government, includes investments from at least three state-owned companies. XPeng Aeroht's post-investment valuation exceeds $1 billion, with Guangzhou GET Investment Holdings contributing the largest amount of $70 million.

Guangzhou Development District Holding Group Co. Ltd: Guangzhou Development District Holding Group Co. Ltd. is involved in coordinating investments in technology ventures. Through its subsidiary, Guangzhou GET Investment Holdings Co. Ltd., it made the largest investment of $70 million in XPeng Aeroht's latest $150 million funding round to support the mass production of flying cars.

Guangzhou GET Investment Holdings Co. Ltd.: Guangzhou GET Investment Holdings Co. Ltd. is a subsidiary of Guangzhou Development District Holding Group Co. Ltd. It recently made a significant investment of $70 million in XPeng Aeroht, part of a $150 million funding round to support the mass production of flying cars.

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What Happened When

Between October 2020 and July 2024：: The period during which the Tesla vehicles affected by the hood issue were made.

August 2, 2024：: Mercedes-Benz AG was approved to test advanced autonomous driving in Beijing, becoming the first international auto brand to do so.

Tuesday, August 6, 2024：: Tesla Inc. announced a recall notice from China’s State Administration for Market Regulation to send a software update to more than 1.6 million cars in China due to an issue with the hood.

Thursday, August 8, 2024：: Shares of AI chipmaker Black Sesame International Holding Ltd. tumbled up to 35% on their debut, closing down 27%. They had been priced at HK$28, raising HK$1.04 billion.

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