Honor sale has no significant impact on the company - Huawei

Wednesday, 18 November 2020 at 04:10

After all the speculations regarding the sales of Huawei's sub-brand, Honor, has now officially confirmed the sales. Huawei Investment Holding Co., Ltd. today issued a statement regarding the sale of Honor's business assets. Huawei Investment Holdings stated that it decided to sell the assets of Honor business as a whole, and the purchaser is Shenzhen Zhixin New Information Technology Co., Ltd. The aforesaid business asset sales are in line with the decision process of the company's internal decision-making bodies. However, it claims that the sales will not cause a decrease in the company's combined net assets. It will also not have a material adverse effect on the company's solvency.

Huawei said that at a difficult time when industrial technology elements were unsustainable and consumer business was under great pressure, Huawei invested in the continuation of Honor channels and suppliers. It decided to sell the assets of Honor business as a whole, and concentrate on Huawei.

The following is the full text of the announcement:

Huawei Investment & Holding Co., Ltd. Voluntary Information Disclosure Announcement on the Overall Sale of Honor Business Assets

Huawei Investment & Holding Co., Ltd. (hereinafter referred to as the "Company") decided to sell the assets of Honor business as a whole, and the purchaser is Shenzhen Zhixin New Information Technology Co., Ltd. The acquirer was jointly established by Shenzhen Smart City Technology Development Group and more than 30 Honor agents and distributors. For Honor, after sales, the company and its subsidiaries do not own any shares, nor participate in management and decision-making.

The aforesaid business asset sales are in line with the decision process of the company's internal decision-making bodies, will not cause a decrease in the company's combined net assets, and will not have a material adverse effect on the company's solvency.

Special announcement.

Honor phones with GMS may be coming soon

With Honor sale, the company is now completely free from Huawei. It has no connection whatsoever with Huawei and now runs independently. To this end, it is very possible that we will see future Honor phones with Google Mobile Services.

However, before this will happen, the U.S. will probably scrutinize the transaction to ensure that Honor is now free from Huawei. It will also analyze the purchaser to ensure that the ban so far does not extend to them. If the new buyer checks all the boxes positively, Honor phones with GMS are coming soon.