Huawei and Honor cooperation has come to an end

Huaweiof Honor Following the sale of its business line and related server businesses, information about the details of these transactions was included in its annual report for 2023. The sale of the Honor brand was completed in November 2020 by Shenzhen Zhixin New Information Technology Co., Ltd. It resulted in a full-scale acquisition by. This acquisition was made jointly by Shenzhen Smart City Technology Development Group and Honor’s more than 30 agents and distributors. By relinquishing its shares in the new Honor company, Huawei has completely disposed of the brand.

According to the report, Huawei, Honor
announced that it has fulfilled all its rights and obligations arising from the sale by signing an additional agreement regarding its business. Since the sale transaction took place in installments, the total income from the sale has not yet been determined.

Huawei and Honor cooperation has come to an end

On the other hand, financial instruments associated with the sale were measured at fair value rather than market price. Cash inflows from these instruments were presented within the scope of investing activities in the consolidated statement of cash flows. The fair value change in financial instruments resulting from the divestment of companies and businesses in 2023 represented a significant amount of 55.853 billion yuan ($7.872 billion).

Huawei, Honor It sold its brand to a consortium of more than 30 companies, including Shenzhen government-backed institutions, e-commerce platform Sunning.com Group and China Telling Telecom, a distributor of major smartphone brands such as Huawei, Samsung and Apple. This sale aimed to enable the Honor brand, which had difficulties accessing important components due to restrictions imposed by the US government on global suppliers, to continue its operations as an independent entity. This strategic move was aimed at securing Honor’s access to critical supplies and enabling it to navigate an independent path amid Washington’s sanctions and restrictions.