This morning, a number of companies issued a joint statement. It turns out that Shenzhen Zhixin New Information Technology Co., Ltd. has signed an acquisition agreement with Huawei Investment Holdings Co., Ltd. According to the contract, it acquired the Honor brand. After the sale, Huawei no longer holds any shares in the new Honor company.
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According to a report from the Financial Times, a person close to Honor said that the current employees of Honor have not changed much. Most employees signed the labor agreement with Honor Terminal when they entered the company. And some employees may have to re-sign if they did not.
The person also said, ‘It feels like there will be a transition period. It is not easy to separate from Huawei. It is expected that Huawei’s software and hardware research and development will also be allocated a lot. Otherwise, Honor is just an independent brand and lacks technology.’
Public information shows that the Honor brand was released in December 2013, mainly for young people. The smartphone products are divided into four series: V series, HONOR series, X series, and Play series.
How Will The New Honor Act?
This morning, Huawei responded that in order to allow the continuation of Honor channels and suppliers, Huawei Investment Holding Co., Ltd. decided to sell the assets of Honor business as a whole. As for the Honor after the delivery, Huawei does not own any shares. And it won’t participate in management and decision-making.
By the way, Shenzhen Zhixin New Information Technology Co., Ltd. was jointly invested and established by Shenzhen Smart City Technology Development Group and more than 30 Honor agents and distributors. The company’s app showed that Shenzhen Zhixin New Information Technology Co., Ltd. was established on September 27, 2020. The legal representative is Rao Junxiang. It has a registered capital of 100 million yuan ($15.23 million). And the business scope is commission agency; goods or technology Import and export; development, production, sales: communications and electronic products, computers, satellite TV receiving antennas, tuner, digital satellite TV receivers, medical equipment (Class 1, Class 2, and Class 3 medical devices).
According to the Daily Business News report, an employee of Honor said: ‘There will be no changes in personnel, and the management will remain the original team.’ In other words, Honor CEO Zhao Ming will still be the leader of the new company. Some Honor users worry that their sale will affect their after-sales service to Huawei stores. They also worry that this agreement will affect functions such as smooth communication with Huawei smartphones. In this regard, the above-mentioned Honor employees refused this.
Honor customer service said that after Honor becomes independent, the rights and interests of sold and on-sale product accounts and after-sales won’t suffer. However, the products released and sold in the future will be served by the Honor Service System.