Chinese smartphone manufacturer, Honor, has recently launched devices that can be folded to nearly the same thinness as an iPhone. This Beijing-based firm, a spinoff from Huawei, has proclaimed that it has received financial support from new investors as it gears up for an initial public offering (IPO).

According to the announcement made on Thursday, the new investors include China Telecom, one of the country’s prominent telecommunication providers, CICC Capital, a venture capital firm known as Cornerstone, and SDG – a fund associated with a Shenzhen economic zone. The company also stated that its current partners have further invested through a platform known as Jinshi Xingyao.

Honor had previously stated in early 2021 that it aims to alter its shareholder structure in the last quarter of the year, following which it will initiate the IPO process when deemed appropriate. The company has not yet disclosed where it plans to list but had first announced its IPO plans in November 2023.

Honor became an independent entity from the Chinese telecommunication powerhouse, Huawei, in November 2020. This separation occurred after Huawei faced sanctions from the U.S. According to Huawei, it does not possess any shares in Honor nor does it have any influence over its business decisions.

Recently, Honor unveiled that the upcoming version of its operating system will incorporate AI to emulate actions on a touchscreen, such as opening an app to order coffee delivery. On Wednesday, the company launched its new Magic7 series of phones in China, which are equipped with these AI features.

Counterpoint reports that nearly one-third of Honor’s sales during the first half of this year were from markets outside of China.

This report received contributions from CNBC’s Arjun Kharpal.

This article should be of interest to potential investors or those intrigued by the tech industry, though its focus is not solely on investment opportunities.