China Mobile's investment takes Honor closer to IPO

Honor received investment from China Mobile before the IPO.

On the morning of August 24, Honor confirmed to multiple media outlets that it had received investment from China Mobile. This seems to be the last round of financing before Honor's IPO.

Regarding China Mobile's investment, Honor stated that the company always adheres to the principle of open and transparent development and will continue to diversify its shareholding structure. China Mobile's investment in Honor is a financial investment with good synergies in the innovation of personal and home terminal markets.

In its statement, Honor said that as a leading enterprise in the smart terminal field, Honor has a rich product portfolio, while China Mobile has significant advantages in channel resources and user resources. The two parties have broad cooperation space in business areas such as innovation in comprehensive solutions for consumers, the Chinese market, and expansion of high-end users. Through this cooperation, both parties will give full play to their respective advantages and jointly provide users with better and more innovative experiences.

Neither China Mobile nor Honor disclosed the amount of financing.

Receiving investment from China Mobile also adds certainty to Honor's IPO. In November last year, Honor officially announced through board documents, "To achieve the strategic development of the company in the next stage, the company will continue to optimize its shareholding structure, attract diverse capital, and promote the company's entry into the capital market through an initial public offering."

In January of this year, Honor CEO Zhao Ming further responded to the topic of Honor's IPO in an interview video. Zhao Ming said, "From a business perspective, going public is a financing (behavior) and a process of cashing in one's efforts. Frankly speaking, Honor's profit realization rate today is 120% to 130%, with billions of cash flow on the books."

In terms of business, in the second quarter of 2024, shipments of smartphones in the Chinese market increased, and Honor's market share was 14.5%, ranking fourth. Overseas, in the first quarter of 2024, Honor's market share in Latin America increased to 7%, a year-on-year increase of 293%.