On August 5, in response to Reuters’ reports on Honor’s listing, Honor stated that Honor always adheres to the principle of open and transparent development and will continue to diversify its shareholding structure. Honor plans to launch corresponding joint-stock reform in the fourth quarter of this year and launch the IPO process in due course. Honor will disclose relevant financial data in the corresponding process.
In addition, in response to the inquiry that "Honor has received support from the Shenzhen government", Honor responded that from January 1, 2021 to the present, the company has not received support from the Shenzhen government beyond that for ordinary enterprises. Meanwhile, the special support items cited in the Reuters email were never received.
Chinese smartphone maker Honor has received local government support as it prepares for an initial public offering (IPO), Reuters exclusively reported. Honor is getting R&D funding, tax breaks and support for overseas expansion. The additional funding could boost Honor's appeal to investors as it prepares to hit financial markets.
According to Reuters, in 2020, a company controlled by the Shenzhen State-owned Assets Supervision and Administration Commission acquired Honor from Huawei. At that time, Honor was valued at approximately 100 billion yuan ($13.8 billion). Honor declined to disclose any IPO details, such as its valuation.
The company is seeking to list on China's A-share market and is expected to be valued at a higher price, two people familiar with the matter said. The company could go public this year or early next year, one of the people said. The people spoke on condition of anonymity because the plans have not yet been finalized.