Written by / Dou Wenxue

Edited by / Ziye

Many may have never anticipated Zhao Ming's departure from Honor.

On the afternoon of January 17, multiple media outlets reported that an announcement had been made on Honor's internal network, stating that former CEO Zhao Ming had submitted his resignation from his executive positions due to health reasons. After thorough discussion and consideration, the board of directors decided to respect Zhao Ming's wishes and accept his resignation.

Two days prior, Honor had clarified the news that "Zhao Ming had resigned and taken away the entire Magic 7 team." At that time, Zhao Ming had yet to respond on social media, leaving some in the market skeptical.

However, by evening, Zhao Ming first released an internal letter on Honor's internal network "Homeland" and subsequently published a lengthy article on his personal Weibo account, officially bidding farewell to Honor and tying up loose ends.

Zhao Ming's long post on Weibo, image source: Zhao Ming's personal Weibo

Previously, many believed that the "leadership change at Honor" was merely a rumor. Zhao Ming's choice to resign at this juncture is indeed unexpected.

On December 28, 2024, just half a month ago, Honor officially announced the completion of its joint-stock restructuring, and the company name was officially changed to "Honor Terminal Co., Ltd." At that time, informed sources also indicated that Honor would promptly initiate the IPO process following the completion of the shareholding reform.

Five days earlier, Honor had just unveiled its latest high-end product, the Honor Magic7 RSR Porsche Design and Imaging Technology, marking another significant step toward its high-end positioning.

It is no exaggeration to say that the current period is crucial for Honor's development. Zhao Ming's departure at this time is uncharacteristic of his usual style.

Over the past decade, Zhao Ming has never missed any pivotal moment for Honor.

When it was time to sever ties with Huawei, he took bold actions, relocating the team out of Huawei's offices and decisively cutting off the previous supply chain. When it was time to expand channels, he was swift, increasing Honor's market share by 8.5 percentage points in just one quarter. When it was time to target the high-end market, he acted promptly, introducing foldable phones and entering the AI mobile phone race...

Both Honor employees and consumers may have become accustomed to the "bond" between Honor and Zhao Ming, watching him lead Honor through challenges, step by step, reaching new heights.

However, as Honor stands on the brink of achieving its next goal—listing—Zhao Ming handed over the reins to the new CEO, Li Jian, and laid down his "honor."

1. Leaving at Honor's Moment of "Honor"

If we look for reasons by tracing the events, Zhao Ming's departure is traceable.

Before publishing his lengthy resignation post, Zhao Ming's last Weibo post was on January 12, where he merely retweeted a Weibo promoting the imaging capabilities of the Honor Magic7, with a simple caption: "Extreme, pure beauty."

This was Zhao Ming's only Weibo post in 2025.

And 2025 is an extremely crucial year for Honor, making Zhao Ming's silence on social media unusual.

At the end of December 2024, Honor successively released two pieces of news, pointing to significant progress in two important aspects of its business.

The first was on December 28 of last year, when Honor announced that the shareholding reform had been completed. Honor Terminal Co., Ltd. had legally transformed into a joint-stock company on December 28, 2024, and the company name was changed to "Honor Terminal Co., Ltd."

Image source: Honor's official website

This signifies that Honor is one step closer to going public.

An informed source also confirmed this to Securities Daily, stating that this joint-stock restructuring involves changes in the company's form and name and does not affect its daily operations.

The source further indicated that after the completion of the shareholding reform, Honor would promptly initiate the IPO process, with further news to be disclosed during the corresponding stages. To achieve the company's strategic development for the next phase, Honor aims to list on the capital market through an IPO.

The other news was on December 23 of last year, when Honor released the King Imaging Technology and the Magic7 RSR Porsche Design model.

Among them, the Magic7 RSR Porsche Design model is positioned as a high-end product, jointly designed by Honor and Porsche. This model boasts a unique and textured design and represents the pinnacle of Honor's recent technological achievements.

In terms of imaging, the Magic 7 RSR is equipped with a 50-megapixel super dynamic Falcon main camera, a 200-megapixel ultra-sensitive telephoto camera, and a 50-megapixel wide-angle camera.

While the current latest Apple iPhone 16 Pro Max has pixel counts of only 48 million, 48 million, and 12 million for its three lenses, Honor has maximized the parameters for the Magic 7 RSR's lenses.

Recognizing that simply increasing parameters cannot fully leverage the effectiveness of this imaging hardware combination, Honor has introduced a new algorithm—King Imaging, which integrates AI large model algorithms to provide targeted optimization in the areas of snapshot, portrait, and ultra-long zoom.

King Imaging is, to date, the industry's first AI mobile imaging large model algorithm combining terminal and cloud technology. It is likely to become synonymous with Honor Imaging, further highlighting Honor's unique characteristics.

The AI technology in imaging is just the tip of the iceberg of Honor's AI layout. Two months ago, Honor showcased the company's latest achievements in AI mobile phone technology with the new Magic7 series.

This series of mobile phones is equipped with Honor's self-developed AI smart operating system MagicOS 9.0—the AI-embodied intelligence YOYO, which can achieve pure AI vision and task autonomous execution without ecological adaptation.

Zhao Ming was elated at the time. He used YOYO to order 2,000 cups of Luckin Coffee for the audience at the conference. He believed that this not only changed the traditional model of "people understanding mobile phones" and "people finding services" but also ushered in the era of "autonomous driving" from "manual driving".

Image source: Zhao Ming's personal Weibo

In addition to ordering coffee for the entire audience, the YOYO intelligence system can also proactively provide English translation, article summaries, schedule creation, etc., based on the current screen content, achieving proactive understanding and response for multiple rounds, multiple intentions, and full-screen interactions.

After separating from Huawei, the former Honor strived to shed the aura of Huawei and establish itself as a unique brand. Nowadays, with the listing imminent, the high-end strategy showing initial success, and the successful deployment of AI mobile phones, Honor seems poised to achieve its "honor" moment.

On December 31, 2024, Zhao Ming also summarized 2024 on his official Weibo. He mentioned the fourth anniversary of the new Honor, the Honor concept of "going to your own distant place with your own name," the unwavering AI strategy, the push towards high-end positioning, overseas expansion, and the smooth completion of joint-stock restructuring...

Everything seemed to be progressing in the direction Zhao Ming had envisioned.

But he chose to leave at this critical juncture.

In social media discussions, one speculation emerges: after the completion of Honor's shareholding reform, shareholders have more influence, potentially leaving Zhao Ming in a somewhat passive position.

This speculation may be related to another personnel change at Honor. In November 2023, Wu Hui, with a background in Shenzhen state-owned assets, replaced Wan Biao as the company's chairman. In September 2024, after Honor initiated the shareholding reform, Wan Biao resigned for personal reasons.

From the perspective of Honor's current shareholding structure, it indeed exhibits diversified characteristics.

According to Qichacha, Honor's shareholders include Shenzhen State-owned Assets Collaborative Development Private Equity Partnership, Guoxin Capital, Shenzhen Chunya United Technology, BOE Technology, etc., encompassing local state-owned assets, upstream and downstream enterprises in the industrial chain, central enterprise operators, and third-party capital.

Regardless of the reason, after leading Honor on the path of "independence," Zhao Ming and Honor ultimately bid farewell at the beginning of 2025. In Honor's future endeavors, Zhao Ming is no longer the protagonist.

2. Zhao Ming, Once the "Soul" of Honor

Zhao Ming's internal letter is filled with a sense of reluctance.

He addresses Honor's colleagues as "brothers and sisters," recalling every "honor" moment in Honor's growth, praising the excellence of Honor employees, and narrating his satisfaction and pride.

"Choosing to let go and leave Honor is the most difficult decision I have made in my life."

Ten years ago, after careful consideration, Huawei founder Ren Zhengfei selected Zhao Ming to become Honor's second leader. At that time, Honor needed someone who dared to compete in the competitive market and could step up at crucial moments.

Time has proven Ren Zhengfei's vision. Zhao Ming is indeed a figure who rises to the occasion, and he has been doing so for a decade.

In 2015, just after taking office, Zhao Ming led Honor to achieve shipments of over 40 million units, realizing an annual overall sales revenue of approximately US$6 billion, surpassing the KPI set by Yu Chengdong.

In 2016, when the Internet mobile phone market was experiencing intense turbulence, Honor completed its offline layout. By the end of 2017, Honor's online and offline sales ratio reached a "fifty-fifty split".

On December 26, 2018, Honor celebrated its fifth anniversary. Honor announced a major brand upgrade, removing the Chinese characters "glory" from the brand logo and changing the English from lowercase "honor" to uppercase "HONOR".

Honor Brand Upgrade Announcement, Image source: Honor's official WeChat public account

This was a symbolic move for Honor's global strategy.

Zhao Ming once said in an interview with media including China Economic Weekly, "Honor wants to be a 'slow bird' in the mobile internet era, pragmatic and focused on flying to the global market. Honor will never be an opportunistic flying pig waiting for the wind."

This "slow bird" spirit was even more evident after 2020.

In 2020, Huawei reluctantly parted ways with Honor. Zhao Ming also made up his mind to sever Honor from Huawei's automotive enterprise. He resolutely led the team out of Huawei's offices and even drew a clear line with Huawei's previous supply chain.

It is undeniable that reshaping the supply chain takes time, but Zhao Ming only gave himself less than four months.

On January 22, 2021, the newly independent Honor from Huawei released its first new mobile phone—the V40 series smartphone, equipped with the MediaTek Dimensity 1000+ chip.

Moreover, after the conference, Zhao Ming revealed in a media interview that Honor's supply chain had fully recovered, with suppliers including AMD, Samsung, Microsoft, MTK, etc., having all completed agreement signings with Honor.

Behind the words "fully recovered" are countless "bloody battles" endured by Zhao Ming and Honor.

After resolving the supply chain issue, Zhao Ming continued to lead Honor with full force, transforming the brand's positioning to high-end. New products emerged continuously, and product prices also began to soar, ranging from the 1000+ to the 3000+, 4000+, and even 7000+ brackets.

In the second year after Honor's independence, the brand's mobile phone market share in China surged. According to IDC data, in the third quarter of 2021, Honor's smartphone shipments were 14 million units, with a market share of 17.3%. In the second quarter of that year, Honor's mobile phone shipments were only 6.9 million units, with a market share of only 8.8%.

On the path to targeting the high-end market, Zhao Ming has always been ambitious. "Honor is determined to change the state where Apple dominates the high-end market alone. The Honor Magic 4 released in the first half of this year is a product that can compete with the iPhone. None of the flagship products released on the market can win my recognition."

Zhao Ming remains the unyielding Zhao Ming, just as Ren Zhengfei chose him to be.

In 2022, Honor ventured into overseas markets once again. Zhao Ming emphasized that Honor's entry into the global market would definitely not rely on low prices and that it requires strategic patience to build a global high-end brand.

In his New Year message for 2025, Zhao Ming revealed that Honor's overseas sales accounted for more than 50% in December 2024 and achieved large-scale profitability in multiple regions, "truly becoming an international enterprise."

Image source: Zhao Ming's personal Weibo

It can be said that without Zhao Ming, there would be no today's Honor. Over the past decade, Honor has embodied the "Zhao Ming spirit," guiding it through challenges.

However, every step on the path of fighting and growing cannot be error-free, making every step of Honor's journey arduous.

Zhao Ming also expressed a bit of fatigue in his internal letter. "Many Honor friends have playfully called me Iron Man over the past 10 years. This long-term, high-intensity work has left rows of various exceedances on the medical examination form, as well as guilt towards my parents and family. Therefore, for the next period, I will adjust and repair my overburdened body, accompany my family, read books, and improve myself."

3. Honor's Path Forward Without Its "Light"

For Honor, changing leadership before the IPO is certainly not good news. Significant adverse changes in senior management may impact Honor's listing process.

Until now, Honor, a brand once highly active in updating news on its official website, has refrained from releasing any information regarding Zhao Ming's resignation. Perhaps the company is acutely aware of the significant impact such a departure would have on the brand, given Zhao Ming's pivotal role.

Image source: Honor's official website

For a company aiming to successfully list, showcasing the future growth potential of Honor to investors is paramount. However, in 2024, Honor's mobile phone shipments began to exhibit signs of decline.

In the fourth quarter of 2023, Honor led the domestic mobile phone market with a 16% share. Yet, entering 2024, its market share has consistently declined over several quarters.

Canalys data reveals that from the first to the fourth quarter of 2024, Honor's market share in mainland China was 16%, 15%, and 15%, respectively. By the fourth quarter, Honor fell out of the top five, with a market share of less than 14%.

In contrast, the overall Chinese mobile phone market is experiencing positive growth. Canalys data shows that annual smartphone shipments in mainland China reached 285 million units in 2024, a 4% year-on-year increase.

Some analysts attribute this situation to Huawei's return to the Chinese market. In the four quarters of 2024, Huawei's market share was 17%, 15%, 16%, and 17%, respectively.

Thus, Honor cannot afford to be complacent regarding sales volume.

Beyond the return of old rivals and the decline in market share, Honor, eager to go public, still faces numerous challenges.

For a successful listing, Honor must stabilize its performance, which necessitates maintaining sales volume amidst increasing competition. The mobile phone market in 2025 promises to be even more fiercely contested.

At the beginning of this year, Apple announced price reductions and promotions; Huawei will intensify its investment in the HarmonyOS ecosystem; and Xiaomi, with the release of the Xiaomi 15 series, has further strengthened its presence in the high-end market.

Therefore, Honor must vigorously invest in technological development, continuously enhance product performance, and create truly innovative AI mobile phones—a path it must embark upon.

Moreover, Honor's previous cost-effective positioning is deeply entrenched in consumers' minds. To truly achieve high-end positioning, it is essential to further bolster the company's brand power and associate the brand with premium mobile phones.

Image source: Honor's official Weibo

Another source of anxiety for Honor's shareholders is the declining valuation of the company.

According to a previous Caixin report, a channel merchant revealed that the price at which Shenzhen state-owned assets acquired Honor from Huawei may have been as high as approximately RMB 260 billion. However, Honor's pre-IPO financing plan, which aims to submit materials for listing on the ChiNext in 2024, sets a pre-IPO valuation of RMB 200 billion.

This indicates that Honor's current valuation has shrunk since its official separation from Huawei.

Additionally, Honor needs time to mitigate the impact of Zhao Ming's departure.

One significant impact is the loss of 'Zhao Ming' as a 'golden signboard' for the brand.

In the era of short video proliferation, Zhao Ming, like other company founders, has established an entrepreneur IP deeply intertwined with Honor.

From now on, consumers will 'never see Mingge's press conference again.' Under the social media topic of 'Zhao Ming's resignation,' numerous comments such as 'I just ordered Honor Magic7, but Mingge left?' and 'I hope Mingge changes jobs, but I still want to buy Mingge's phone' reflect this sentiment.

Whether Honor can establish a new entrepreneur IP and overcome the decline in brand influence due to Zhao Ming's resignation is a question that needs to be addressed.

All these pressures fall on Li Jian, Zhao Ming's successor and the new CEO.

According to information, Li Jian joined Honor in 2021 and has held positions such as vice chairman and director. He has also served as the president of the Human Resources Department and been a core member of the Honor management team for an extended period.

Prior to joining Honor, Li Jian was a formidable force in Huawei's overseas business. He joined Huawei in 2001, starting as a product manager in Nigeria. He has held positions such as president of Huawei's West Africa region, president of the Northeast Europe region, president of the Europe region, president of the Americas region, and member of the Supervisory Board.

Previously, Li Jian was recognized as a typical case of cadre promotion within Huawei. Huawei's internal newspaper once reported that under Li Jian's leadership, the Nigerian representative office achieved global sales performance rankings for four consecutive years, expanding the Nigerian market to a $1 billion scale.

Whether it's Li Jian's resume before joining Honor or his management style and momentum, he bears a striking resemblance to Zhao Ming. This similarity could help Honor smoothly transition during the leadership change and continue to progress.

However, it is evident that Li Jian's responsibilities are no less onerous than Zhao Ming's. How he will steer Honor's future requires a prompt response from him.

(The headline image of this article is from Zhao Ming's personal Weibo.)