From Investing.com: 2024-08-05 01:15:47

Chinese smartphone maker Honor is getting substantial support from local government backers in Shenzhen as it gears up for an IPO. The company is receiving R&D funding, tax breaks, and assistance to expand overseas. Honor aims to list on China’s A-share market valued at around $13.8 billion. It also aims to ship 100 million handsets annually by 2026, becoming a top global vendor by 2028.

The official support for Honor illustrates the company’s importance to Shenzhen’s economy amidst a slowdown in property sector. Shenzhen pledged special policy support to stabilize industrial growth and exports. The city is providing retroactive funding for research projects and special trade projects to help Honor expand in smaller cities and overseas. Honor has saved 600 million yuan annually in raw material costs and foreign exchange payments.

Shenzhen’s Futian district has established an Honor work team, providing certification support, 500 housing units, and 150 million yuan in financial assistance. The city’s support for Honor is considered beyond the ordinary, reflecting the company’s strategic importance to Shenzhen’s economy. Honor’s IPO plans and expansion goals have garnered significant government backing to boost its growth and success.



Read more at Investing.com: Exclusive-China’s Honor gets strong state backing as it readies IPO By Reuters