Huawei officially sells the glory, here is the buyer’s record | TechNews

Chinese media reported that Huawei officially announced that it will sell the Honor brand, and the identity of the buyer was confirmed. This is a new company that was established on September 27, 2020.

Shenzhen Zhixin New Information Technology Co., Ltd. issued a statement in the Shenzhen Special Zone Daily that it has entered into an acquisition agreement with Huawei Investment Holdings Co., Ltd. Under the agreement, Shenzhen Zhixin New Information Technology Co., Ltd. As a buyer, you will complete the comprehensive acquisition of the business assets related to the Honor brand, and after the sale, Huawei will no longer own shares in the company.

Shenzhen Zhixinxin said the acquisition is a market-oriented and self-help investment initiated by the Honor brand-related industry chain. It was jointly established by Shenzhen Smart City Technology Development Group and more than 30 Honor agents and distributors. Protect the interests of consumers, channels, suppliers, partners and employees. It is also an industry complementarity. All shareholders will fully support New Glory so that New Glory can take advantage of all parties and participate in market competition more efficiently. It is believed that because Huawei no longer has shares in the Honor brand, it will be able to avoid blocking the US trade war.

Controlled by Shenzhen SASAC

However, according to existing information, although Zhixin claims that it is self-help of the supply chain, Shenzhen Smart City Technology Development Group, which is wholly owned by Shenzhen SASAC, owns 98.6% of the shares, and the Shenzhen State-owned Assets Cooperative Development Private Equity Fund Company owns only 1.4%, the actual controller is Shenzhen SASAC. And on November 13 before the acquisition, Shenzhen Smart City Technology Development Group made an industrial and commercial change, and its registered capital increased substantially from about 200 million RMB to 3.2 billion RMB. The current registered capital of Zhixinxin is 100 million RMB.

There’s also news that Honor’s current staff won’t change much. Except for a small number of employee contracts that may need to be renewed to clear the line with Huawei, the rest are basically unaffected. As of today, those most affected by this news should be other Chinese mobile phone brands, especially Xiaomi, whose product positioning is similar to that of Honor. Glory’s current market share is 14.89% and Xiaomi’s 16.83% is not much different, but now Glory has become a state brand and other development expectations like Oppo e vivo will also be suppressed.

It is worth noting that the new investors in the announcement also promised to enjoy only the financial return on investment in the future, which also means that Huawei can still play the guide behind the operation.After all, Honor is just a brand. with weak technical support, and is an American manufacturer It is expected that after the resumption of supply, Huawei and Honor will be closer. Today, market analysts say that the majority of the technical staff to be split at New Glory are related to MediaTek. Perhaps MediaTek is even more advantageous, but it is difficult to judge whether it will increase the overall market share.

(Source: Shenzhen Special Zone News)

(Source of the first image: Huawei Honor)

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