ZTE Could Sell Its Smartphone Business For Over $5 Billion

ZTE has denied reports that it is planning to transfer its smartphone business into a new joint venture valued at approximately $5.6 billion.

Key points

• In April 2025, ZTE established Shanghai Shenqi Jiyuan Intelligent Terminal Co., Ltd.
• Red Magic 12 Pro+ is a Gaming PC Shrunk into a Smartphone.
• According to the company's 2025 interim report, the subsidiary was wholly owned by ZTE.
• Consequently, there is no confirmed agreement involving the documented $5.6 billion valuation or the proposed $1.1 billion investment.
• Nevertheless, ZTE rejected the claims on November 3, telling a number of Chinese news outlets that the reports were inaccurate.

Meanwhile, the Chinese telecommunications firm was reportedly negotiating with a major internet business and Shanghai state-owned investors to restructure its consumer smartphone operations.

According to The Paper, the firm additionally noted it reserved the right to take legal action over the publication and circulation of the claims. What Was Documented Concerning the $5.6 Billion Accord?

In practice, the original report asserted that ZTE was preparing to move its consumer smartphone operations into a jointly owned business involving three parties: ZTE, a major Chinese internet firm, and Shanghai state-owned investors. The proposed business was reportedly valued at approximately $5.6 billion.

Notably, the unnamed internet firm was stated to be considering an investment of around $1.1 billion.

As the report notes, the final valuation, ownership percentages, and transaction structure had not been agreed upon. Discussions allegedly began in April 2026 and gained momentum in July.

Notably, the parties were reportedly close to agreeing on a cooperation model by September, with an announcement originally planned for late October. Nevertheless, the noted announcement never took place.

Notably, the proposal was remarked to cover ZTE's consumer smartphone operations in China and international markets, rather than the sale of the entire business.

Red Magic 12 Pro+ is a Gaming PC Shrunk into a Smartphone. RedMagic Was Reportedly Excluded From the Accord.

Meanwhile, the original report additionally maintained that ZTE's RedMagic gaming smartphone business would remain outside the proposed joint venture.

This meant the transaction would primarily involve ZTE's mainstream consumer smartphone operations.

Meanwhile, router products and home terminal devices were reportedly projected to return to the parent company's direct management.

Notably, the proposed arrangement could have provided extra investment and operational backing for ZTE's smartphone business while allowing the parent firm to focus on its other operations.

Nevertheless, ZTE's subsequent denial casts doubt on the noted restructuring and its proposed terms. ZTE Had Already Established a Smartphone Subsidiary.

Meanwhile, the report additionally pointed to an existing ZTE subsidiary as a feasible vehicle for the proposed restructuring.

While Ni Fei served as a director, wang Xiyu was appointed chairman.

Notably, the original report asserted that employees from ZTE's smartphone operations had already been transferred to the subsidiary.

Nevertheless, the existence of the subsidiary does not establish that ZTE planned to sell or restructure its smartphone business through a new joint venture. ZTE Nubia Claims Navix Ultra is World's First AI Phone. ZTE Rejects the Restructuring Claims.

After the publication of the report, a number of Chinese news organizations contacted ZTE for clarification.

On November 3, the firm denied that it was negotiating the noted transaction.

ZTE informed The Paper that the claims were seriously inconsistent with the facts and stated it reserved the right to pursue legal action over the reports. The firm provided similar denials to Yicai and National Business Daily.

Meanwhile, the identity of the alleged internet firm was never disclosed, and no official transaction terms were unveiled.

For now, ZTE has rejected the reports, and there is no confirmed plan to transfer its consumer smartphone operations into the proposed joint venture. Stay Connected with ProPakistani.

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Taken together, the developments around ZTE Could Sell Its Smartphone Business For Over $5 Billion point to a situation that is still moving, and the coming days should bring more clarity.