What is Huawei’s intention in selling its Honor brand?

  • Editor: Victor Torres、文顺
  • Author: 神奇四侠
  • Material: 信心满满
  • Translator: Ranting

More truth at: gtv.orggnews.org

On November 17, Huawei sold its business related to its Honor brand due to unsustainable access to industrial technology.

This morning, Huawei released a statement on its website, saying that at a difficult time when the technical elements of the industry are unsustainable available and the consumer business is under tremendous pressure, Huawei Investment Holdings Ltd. decided to sell the assets of the Honor business as a whole to Shenzhen Zhixin New Information Technology Co. Huawei does not hold any shares in the post-delivery glory, nor does it participate in management and decision-making.

According to a report by “Sina Technology”, Shenzhen Zhixin New Information Technology Co., Ltd. has signed an acquisition agreement with Huawei Investment Holdings Ltd. to complete the acquisition of business assets related to the Honor brand, according to a joint statement published by several enterprises in Shenzhen Special Zone Daily. Shenzhen Zhixin New Information Technology Co., Ltd. was established on September 27, 2020. Shenzhen Smart City Technology Development Group, which is wholly-owned by the Shenzhen State-owned Assets Supervision and Administration Commission (SASAC), holds 98.6% of the shares, and Shenzhen State-owned Assets Cooperative Development Private Equity Partnership holds 1.4%. The fund’s investor More than 30 Glory agents and distributors including Beijing Songlian Technology Co., Ltd.

On December 12, President Trump issued an executive order prohibiting U.S. investors from investing in companies owned or controlled by the Chinese military. In addition, the U.S. Department of Commerce officially added Huawei to its “Entity List” last May, prohibiting U.S. companies from selling related technologies and products to Huawei. In fact, Huawei is already struggling. The acquisition does not transform the decadence of related industries, but rather gives the powerful capital behind Huawei a chance to cash out, while the Shenzhen SASAC comes forward to let the people absorb the losses in the form of financial and local bonds.

Reference: https://finance.sina.com.cn/tech/2020-11-17/doc-iiznctke1804290.shtml

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