Former Huawei Unit Honor Receives Strong State Backing from Shenzhen Government for IPO

Aug 5, 2024, 05:25 AM

Chinese smartphone maker Honor, formerly a unit of Huawei, is receiving strong state backing as it prepares for an initial public offering (IPO). According to official documents, Honor is receiving an unusually high level of support from local government backers, including tax breaks, retroactive funding for its research and development, and assistance in expanding overseas. The Shenzhen government is notably involved, using its networks to push Honor's growth. Honor aims to become one of the world's top three smartphone makers by 2028 and is targeting 100 million handset sales by 2026. Despite the substantial support, Honor denies receiving an unusual level of policy backing. The company plans to launch a shareholder reform in the fourth quarter to maintain a diversified equity ownership structure and will disclose financial figures to the public as part of the IPO process, Securities Times reported.