Huawei Technologies Co said on its official website on Tuesday that it has decided to sell all of its Honor business assets to Shenzhen ZhixinNew Information Technology Co Ltd.

The buyer Shenzhen ZhixinNew Information Technology Co Ltd was jointly founded by Shenzhen Smart City Technology Development Group Co Ltd and over 30 agents and dealers of the Honor brand.

"This acquisition represents a market-driven investment made to save Honor's industry chain. It is the best solution to protect the interests of Honor's consumers, channel sellers, suppliers, partners and employees," according to the joint statement released by the agents and dealers.

The acquisition is a multi-win move for the industry, says the statement, adding that all shareholders of the new Honor company will fully support the development of the Honor brand, enabling it to leverage the industry's advantages in resources, brands, production, channels and services, and more effectively compete in the marketplace.

"Once the sale is complete, Huawei will not hold any shares or be involved in any business management or decision-making activities in the new Honor company," Huawei said.

Since its creation in 2013, the Honor brand has focused on the youth market by offering phones in the low- to mid-end price range. During these past seven years, Honor has developed into a smartphone brand that ships over 70 million units annually, Huawei said.

Huawei said its consumer business has been under tremendous pressure as of late. This has been due to a persistent unavailability of technical elements needed for our mobile phone business. "This sale will help Honor's channel sellers and suppliers make it through this difficult time," it added.

"Huawei highly appreciates the continued dedication, attention and support given by Honor's consumers, channel sellers, suppliers, partners and employees," Huawei said.

"We hope this new Honor company will embark on a new road of honor with its shareholders, partners and employees. We look forward to seeing Honor continue to create value for consumers and build a new intelligent world for young people," Huawei added.