On August 5, in response to rumors related to listing, Honor responded to Unicorn that Honor has always adhered to the principle of open and transparent development, and will continue to diversify its equity structure, and Honor plans to launch the corresponding shareholding reform in the fourth quarter of this year, and then start the IPO process in a timely manner, and Honor will disclose relevant financial data in the corresponding process.
Previously, market sources said that people familiar with the matter revealed that Honor was preparing for an IPO and had received a high level of support from the Shenzhen municipal government. According to the report, three documents from the Shenzhen government show that Honor is receiving R&D funding, tax breaks and overseas expansion support. The company has also benefited from a dedicated team from the local government, who have implemented a "leave no questions overnight" policy.
Honor said that from January 1, 2021 to the present, Honor has not received more support from the Shenzhen Municipal Government than usual enterprises.
Synthesis | Wall Street News China Fund News Editor| Arti
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According to the relevant regulatory provisions, after the completion of the share reform, Honor can enter the listing process such as "listing counseling" and officially impact the capital market.
According to a Glory Pre-IPO financing plan, Honor intends to submit materials to apply for listing on the GEM in 2024, and this round of Pre-IPO is valued at 200 billion yuan. When it was sold by Huawei more than three years ago, Honor was valued at about 100 billion yuan.
Tianyancha shows that the number of Honor shareholders has increased from 1 to 15, and the structure is relatively diversified, including local state-owned assets, industrial chain suppliers, third-party capital, etc. Among them, BOE Group, one of Honor's mobile phone screen suppliers, and Smart Interaction1 Holding Spv Rsc Ltd, a foreign-funded enterprise with Middle Eastern background, have both invested in Honor.
In November 2020, Honor officially became independent from Huawei. Shenzhen Zhixin New Information Technology Co., Ltd., as the acquirer, completed the comprehensive acquisition of the business assets related to the Honor brand.
In the more than 3 years since independence, there have been many false news in the industry that Honor intends to go public through a "backdoor" listing. In November last year, rumors of Honor's backdoor listing continued to ferment.
On November 22 last year, Honor issued an announcement of the board of directors, saying that to achieve the next stage of the company's strategic development, the company will continue to optimize the equity structure, attract diversified capital to enter, and promote the company's landing in the capital market through initial listing. With the gradual implementation of the company's plan to enter the open market, the company's board of directors will be adjusted in accordance with the standards of listed companies, and the board of directors will gradually diversify to meet the company's governance and regulatory needs in the new stage of development.
At the same time, in accordance with the relevant provisions of the "Company Law" and the "Articles of Association", Wu Hui will serve as the company's director and chairman, and Wan Biao will serve as the vice chairman of the board of directors.
Zhao Ming, CEO of Honor, said that there is no clear target for listing, and it will definitely choose to list in China, and the board of directors chose to speak out at this point in time to refute the rumors of "backdoor listing". "All kinds of rumors on the Internet have indeed had a very big impact on shareholders, in fact, there is no need to disclose this information at this point in time, but we hope to set the record straight. Backdoor listing has never been an option for Honor. ”
Regarding the arrival of the new chairman, Zhao Ming said that in the process of moving towards the capital market in the future, the structure and operation of the board of directors will be improved in accordance with the requirements of the corresponding listed companies or regulators. "It's part of the whole process. The addition of Mr. Wu will make our board of directors more diverse. Because we are all from business backgrounds, but in the process of facing the capital market in the future, we still need to diversify the board of directors, and experts or professionals from various industries may join the board of directors in the future. ”
Zhao Ming emphasized many times in interviews that backdoor listing has never been a choice for Honor. "Today, the whole company is in accordance with the most stringent standards in terms of the development of product research and development, the growth of the market, the growth of the brand and the corresponding situation of the platform and finance of the whole company. The cash in profit ratio for our cash flow is 130%. ”
In 2022, foreign media reported that Honor sought financing at a valuation of US$45 billion (about 315 billion yuan), but there was no official response to this. As of the close of trading on August 5, the total market value of Hong Kong-listed Xiaomi (01810) was HK $395.86 billion.
According to the latest quarterly mobile phone tracking report released by the International Data Corporation (IDC), in the second quarter of 2024, China's smartphone market shipped about 71.58 million units, a year-on-year increase of 8.9%, continuing the growth momentum. Among them, Honor ranks fourth in the market with a market share of 14.5%.
In May this year, Honor's first flagship store in the world was officially unveiled in Chengdu. Zhao Ming said that Honor is optimistic about the future of the real economy, and will work with partners to launch the "Thousand Store Plan" in 2024, and is expected to build more than 1,000 new stores within the year.