Honor is no longer a subsidiary of Huawei Consumer Business Group. This consumer electronics company was founded in 2011 as an online brand and has now been sold to a new owner called “Zhixinxin Information Technology Co., Ltd.”.
According to the issued joint statement confirming the acquisition, the new owner of the Honor brand comes from a consortium of more than 30 agents and distributors of the Honor brand and Shenzhen Smart City Development Group Co., Ltd.
According to reports, Shenzhen Smart City Development Group, a subsidiary of Shenzhen State-owned Assets Supervision and Administration Commission, holds 98.6% of the shares, while Shenzhen State-owned Assets Cooperative Development Private Equity Partnership holds 1.4%.
The statement stated that Zhixin New Information Technology will “acquire all commercial assets related to the Honor Brand” and that “Once the acquisition is completed, Huawei will not hold any shares in the New Honor Company.”
The details of the acquisition cost were not disclosed, but an earlier report stated that the figure was approximately $15 billion.
“It is the best solution to protect the interests of Honor’s consumers, channel sellers, suppliers, partners, and employees.”
Since the honor brand was included in the US Department of Commerce’s list of entities, the decision to sell the honor brand is necessary to save the brand from the troubles that plagued its former parent company.
The joint statement also shows that the change of ownership will not affect the development direction of honor or the stability of executives and talent teams.
The consortium also pointed out that they will abide by market rules and compete fairly with other agents and distributors.