Honor, a Chinese smartphone company, secures new investors as it prepares for an initial public offering.

• On Thursday, Honor, the Huawei spinoff, announced new investors and is preparing for an initial public offering.
• The new backers include China Telecom and CICC Capital.
• Honor announced earlier this year that it planned to alter its shareholder structure in the fourth quarter and initiate the IPO process "at a suitable time."

Honor, a Huawei spinoff and Chinese smartphone company, announced new investor support as it prepares for an initial public offering on Thursday.

The new investors in Honor include China Telecom, CICC Capital, Chinese venture capital firm Cornerstone, and SDG, a fund linked to a Shenzhen economic zone. Additionally, Honor's existing partners made a new investment round through an entity called Jinshi Xingyao.

Honor announced earlier this year that it planned to alter its shareholder structure in the fourth quarter, following which it would commence the IPO process "at a suitable time."

Honor announced its IPO plans in November 2023, but the company has not disclosed where it will list.

In November 2020, Honor was spun off from Huawei, a Chinese telecommunications giant, after the parent company faced U.S. sanctions. Huawei stated that it does not own any shares in Honor and has no involvement in its business decisions.

The new Magic7 series of phones released by Honor on Wednesday includes AI features that can mimic actions on a touchscreen, such as opening an app to order coffee delivery.

In the first half of this year, Honor reported that less than two-thirds of its sales originated from China.

— CNBC's Arjun Kharpal contributed to this report.