Huawei settles contractual rights and sale of Honor business

Huawei recently disclosed its 2023 Annual Report which states that the company has settled its contractual rights, obligations, and sale of the Honor business. Things were associated between both parties via a supplementary agreement made in 2023.

The 2023 Annual Report also mentions that Huawei has sold its Honor business and server-related subsidiaries. Revelations say that the sale takes place in installments. Although the overall sale amount in this aspect is still unconfirmed for now.

The story began in November 2020 when Huawei made a deal with the Shenzhen Zhixin New Information Technology Co. Ltd. of over 30 agents and dealers in China. Here, the Chinese tech maker sold off its Honor smartphone business.

After the completion of this sale, the Kirin chipmaker did not have any right to hold shares in the new Honor smartphone company. Now Huawei has fully finalized the contractual rights and sale of the Honor business, as of the 2023 annual report.

Huawei settles contractual rights and sale of Honor (Image Credits: Ghizmochina)

It is worth mentioning that Huawei decided to sell the Honor brand and make it a self-dependent firm due to the pressure of the U.S. sanctions. The parent firm addressed the problems faced by the subsidiary company amid restrictions.

This has been a safe move from Huawei to shield Honor from strict trade regulations. It also wanted Honor to have access to vital supplies without any issues.

Further report details mention that the financial stuff and objects of this sale will be marked under fair value with cash receipts. These slips will be showcased in the investing procedure under the consolidated statement of cash flows. The fair value of these financial items accounts for 55.85 billion yuan.

Image Credits: Huawei Central

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