Core Insights - The CEO of Honor Terminal Co., Ltd., Li Jian, attended the World Internet Conference in Wuzhen, sharing the company's innovations in the AI terminal field and the progress of the Alpha strategy [2] - Li Jian proposed the initiative "Building the Bridge to the Future, Co-Creating a Smart World," emphasizing that AI intelligence will eventually surpass human capabilities, with terminals serving as the core carriers of AI services [2] - Honor plans to invest $10 billion over five years in the Alpha strategy, which aims to create a leading global AI terminal ecosystem in three phases [2] - The Alpha strategy has made substantial progress, with products like the Magic 8 series advancing the goal of creating smart phones [2] - Next year, Honor will launch the Robot Phone, integrating AI, embodied intelligence, and high-definition imaging, aiming to create a "new intelligent life form with warmth" [2] - In terms of ecosystem development, Honor has connected over 4,000 ecological MCPs and intelligent entities through a system-level MCP architecture, achieving cross-brand intelligence integration with HarmonyOS, Android, iOS, and Windows [2] - The recently announced "1×3×N" ecological strategy and HONOR AI Connect platform are collaborating with industry partners to build smart home and transportation industry clusters [2] Research and Development - Honor currently has over 70% of its workforce dedicated to research and development, with more than 2,100 AI-related patents, providing a solid foundation for its AI terminal strategy [3]

Core Viewpoint - The CEO of Honor, Li Jian, stated that AI intelligence will eventually surpass human capabilities, positioning terminals as the core carrier for AI services to humanity [1] Group 1: AI Strategy - Honor launched the "Alpha Strategy" in March this year, planning to invest $10 billion over five years to build a leading global AI terminal ecosystem [1] - The strategy is being implemented in three phases, with substantial progress already made [1] Group 2: Product Development - The Magic8 series and other products are continuously advancing towards the goal of creating "smartphones" [1] - Next year, Honor will introduce the Robot Phone, which integrates AI, embodied intelligence, and high-definition photography, aiming to create a "new intelligent life form with warmth" [1] Group 3: Future Initiatives - Honor plans to establish the Alpha Laboratory as part of its ongoing commitment to AI development [1]

Core Insights - Honor's Alpha strategy has transitioned from planning to physical implementation with the opening of its first flagship store in Shenzhen Bay, marking a significant milestone in its transformation from a smartphone manufacturer to an AI terminal ecosystem company [1][3] Group 1: Alpha Strategy Overview - The Alpha strategy was officially launched in March 2025, aiming to transform Honor into an AI terminal ecosystem company, with a three-phase approach: starting with smart phone development, then expanding into AI ecosystems, and ultimately exploring general artificial intelligence [2] - The flagship store serves as a core platform for the Alpha strategy, designed as an "AI terminal smart living innovation workshop" to enhance consumer experience and foster collaboration among creators [1][2] Group 2: Flagship Store Features - The flagship store features interactive experiences, including a creative interaction between a robotic dog and a traditional lion dance, showcasing the blend of technology and tradition [3] - The store includes an AI assistant experience area with four thematic scenarios: AI lifestyle, AI device assistance, AI creation, and AI companionship, emphasizing convenience and accessibility [3] Group 3: IPO and Future Prospects - Honor's IPO is progressing smoothly, with the company having received listing counseling approval, and the fundraising will focus on key areas of AI research and development [3][4] - The IPO is expected to mark the beginning of a new chapter for Honor in the capital market, potentially making it the first stock in the A-share market focused on the AI terminal ecosystem [3]

Core Insights - Honor's Alpha Global Flagship Store has officially opened in Shenzhen Bay MixC, marking a significant step in the company's Alpha strategy towards creating a global AI ecosystem [1][2] - The flagship store aims to serve as a "global living room" for AI developers, partners, and users, supporting the development of the AI industry cluster in the Greater Bay Area [1][2] Group 1: Alpha Strategy Implementation - The opening of the flagship store signifies the transition of Honor's Alpha strategy from planning to tangible execution, showcasing the company's commitment to becoming a leading AI terminal ecosystem company [2] - Honor's CEO articulated a three-step approach to the Alpha strategy, focusing on expanding technological, industrial, and human potential boundaries in the AI era [1][2] Group 2: Store Features and Experience - The store features an immersive technology atmosphere with design elements inspired by the Shenzhen Bay landscape, including a waterfall and a rotating staircase [2] - An AI experience area showcases products like a lightweight 350g foldable projector and a stringless guitar, highlighting the integration of AI in entertainment and travel [2] Group 3: Collaborative Ecosystem Development - Honor has partnered with China Resources to invite AI companies from the Greater Bay Area for collaborative scene creation and solution demonstrations [3] - The flagship store acts as an "ecological interface," promoting cross-enterprise collaboration and enhancing the cluster advantage in the AI terminal sector [3] - Honor aims to deepen its smart ecosystem through an "open, co-create, and share" philosophy, contributing to the global AI industry [3]

Core Insights - Honor has officially released its 2024 Environmental, Social, and Governance (ESG) Report, emphasizing the importance of ESG as a long-term strategy focused on green environmental protection, privacy security, technology for good, youth empowerment, employee development, industrial collaboration, and responsible governance [1][2] Group 1: ESG Commitment - Honor aims to achieve carbon neutrality in its operations by 2040 and throughout its value chain by 2050, establishing a strong commitment to environmental protection [2] - The company has identified four key areas for carbon neutrality: green products, green manufacturing, green operations, and green partnerships, and has already made progress in these areas [2] Group 2: Green Product Initiatives - In 2024, Honor's green product initiatives have led to a reduction and avoidance of approximately 1,497 tons of greenhouse gas emissions, with 150 models of smartphones and tablets certified for environmental standards [2] - The total amount of recycled and bio-based plastics used in products reached 310 tons in 2024, showcasing the company's commitment to sustainable materials [2] Group 3: Innovation and Accessibility - Honor focuses on human-centered technological innovation, providing AI-powered accessibility features such as screen reading and AI subtitles, benefiting users with disabilities and the elderly [3] - As of the end of 2024, the screen reading feature has benefited 3.8 million users, while nearly 1.2 million users benefit from the AI subtitle feature each month [3] Group 4: Future Directions - The release of the ESG report marks a systematic review of Honor's practices in the past year and serves as a new starting point for deepening its ESG strategy [3] - Moving forward, Honor will continue to align with its Alpha Strategy, focusing on green environmental protection and technology for good, integrating ESG principles into product innovation and corporate operations [3]

Core Viewpoint - Honor has successfully transitioned from a struggling company to one of the top three smartphone manufacturers in China, initiating a significant AI transformation and preparing for an IPO, marking a pivotal moment in its strategic evolution [3][5][30]. Group 1: Company Evolution - Honor began its independent journey in late 2020, requiring a complete rebuild of its technology, brand, and market capabilities [2]. - Despite initial skepticism from the market, Honor has not only survived but thrived, establishing itself among the leading smartphone brands in China [3][30]. - The company is now positioned to become the first "AI terminal ecosystem" company listed on the A-share market, indicating a shift from traditional hardware manufacturing to a focus on AI-driven ecosystems [5][6]. Group 2: Strategic Transformation - Honor's strategic shift reflects a deep understanding of the evolving consumer electronics landscape, moving from hardware-centric models to creating a comprehensive AI terminal ecosystem [6][7]. - The launch of the IPO process is seen as a critical step in accelerating the development of this AI ecosystem, providing necessary capital support [5][6]. - The company's approach emphasizes the integration of AI into user experiences, moving beyond mere hardware performance to delivering seamless, intelligent interactions [7][8]. Group 3: Product Innovation - The release of the Honor Magic V5 marks the first flagship product following the company's transition to an AI terminal ecosystem, showcasing advanced features and capabilities [10][24]. - Honor positions the Magic V5 as a leading AI smartphone, integrating cutting-edge technology and design to enhance user productivity and experience [10][15]. - The device aims to address contemporary challenges faced by users, such as time management and efficiency, through innovative AI functionalities [17][24]. Group 4: AI Strategy - Honor's "Alpha Strategy" outlines a three-phase approach to AI integration, focusing on developing smart devices, building an AI ecosystem, and exploring human-machine collaboration [21][24]. - The company plans to invest over $10 billion in the next five years to establish a comprehensive AI ecosystem, indicating a long-term commitment to this strategic direction [24][29]. - Honor's AI strategy emphasizes collaboration with various stakeholders to create a robust ecosystem, moving away from traditional hardware competition towards a more integrated AI-driven approach [29][30].

Core Viewpoint - Honor is set to launch a series of new products in the second half of the year, aiming to stabilize internal operations and prepare for an upcoming IPO, under the leadership of new CEO Li Jian [1][7][18]. Group 1: Internal Stability - The internal environment at Honor has been relatively unstable due to leadership changes, with six out of eight regional heads being adjusted since the resignation of former CEO Zhao Ming [4][5]. - Li Jian has initiated the "Eagle Plan" to reform the management structure, opening 38 key positions for public competition, resulting in a 45% adjustment in leadership roles [5][6]. - The launch of numerous new products is seen as a way to demonstrate internal stability and boost employee morale [6][18]. Group 2: Shareholder Expectations - Honor's immediate priority is its IPO, with recent steps taken to prepare for this, including completing a share reform and filing for guidance with the Shenzhen Securities Regulatory Bureau [8][10]. - Recent sales data indicates a decline in market share, with a 12.8% year-on-year drop in smartphone shipments, which raises concerns among shareholders about maintaining a favorable valuation [10][11]. Group 3: Li Jian's Leadership Challenges - Li Jian faces significant pressure to ensure that the company's operations and leadership remain stable, especially in light of the IPO requirements that stipulate no major changes in business or management within three years [11][12]. - The "Alpha Strategy" announced by Li Jian focuses on developing AI smart terminals and ecosystems, which aligns with current market trends [13][15]. - There is a need for tangible product innovations to support the strategic narrative, as previous efforts may not be sufficient to meet market expectations [17][18]. Group 4: Product Development and Market Position - The recent launch of the Honor Magic V5 showcases advancements in product design, particularly in achieving thinner foldable screens, but the innovations are not deemed groundbreaking [20][22]. - Li Jian is tasked with finding a unique identity for Honor that distinguishes it from competitors, especially as the company faces pressure from Huawei's return to the market [36][37]. - The success of the Magic V5 is seen as a positive start, but sustaining the company's valuation and supporting significant investments in AI will require new revenue streams [38][39].

Group 1 - Honor has officially initiated its A-share IPO process, marking a significant step in its "second entrepreneurship" and transition from a hardware manufacturer to an AI terminal ecosystem company [1][2] - The company has undergone organizational changes and product launches, including the introduction of several new models such as the Honor Power and Honor GT Pro, which have contributed to its recovery in product strength [1][2] - Honor's strategic focus is on AI, with plans to invest $10 billion over the next five years to advance its "Alpha Strategy," aiming to become a leader in the AI terminal ecosystem [3][4] Group 2 - Honor has established new departments dedicated to AI and software, with a workforce of 2,600 in these areas, and has entered the robotics sector to support its AI strategy [5] - The company has achieved significant sales growth, with the Honor 400 series recording a 195% increase in first-day sales compared to the previous series, indicating a strong market recovery [6][7] - Honor is expanding its global presence, with substantial growth in regions such as Latin America and the Middle East, aiming to transition from "China Honor" to "World Honor" [8]

Core Insights - Honor's recent product launch emphasizes the importance of authenticity, potential release, and self-transcendence, drawing inspiration from Nietzsche's "three transformations of the spirit" [1][5][8] - The company aims to transition from a smartphone manufacturer to a leading AI terminal ecosystem company, with a planned investment of over $10 billion over the next five years [5][6] Brand Development - Honor has been on a journey to rediscover its brand identity and align with real user needs, moving away from external expectations to focus on genuine consumer insights [3][4] - The introduction of the MagicOS 9.0 and the expansion of the foldable screen product line are part of Honor's strategy to adapt to trends in AI, high-end products, and global markets [3][4] Product Innovation - The Honor 400 series features advanced specifications such as 200 million ultra-clear portrait photography, a 7200mAh battery, and the third-generation Snapdragon 8 chip, addressing specific consumer demands [3][4] - The focus on creating products that resonate emotionally with consumers is evident in the emphasis on realistic imagery and user experience [4] Strategic Initiatives - The "Alpha Strategy" aims to build an open, co-creative AI terminal ecosystem, breaking down barriers through collaboration and innovation [5][6] - Honor's "Global Million Eagles Plan" seeks to attract top talent globally, enhancing its organizational structure to support the Alpha Strategy [6] Philosophical Approach - The company's narrative intertwines technology and human essence, aiming to calibrate innovation based on real needs and foster a culture of continuous rebirth and growth [8]

Core Viewpoint - Honor is transitioning from a "smartphone manufacturer" to an "AI terminal ecosystem company," marked by the launch of the "Global Million Eagle Plan" and a new management team's public strategy presentation [3][4][22]. Group 1: Strategic Initiatives - The "Global Million Eagle Plan" consists of four segments: "Eagle," "War Eagle," "Chick," and "Shining Eagle," focusing on technology research, market expansion, talent acquisition, and user insights [4][6]. - The "Eagle" plan aims to recruit 10 leading technical talents globally, targeting breakthroughs in critical AI and hardware technologies [4]. - The "War Eagle" plan involves recruiting 100 sales elites to support growth in regions like Latin America and the Middle East, where sales have increased by over 50% [5][6]. - The "Chick" plan will recruit 1,000 recent graduates to inject fresh talent into the organization, while the "Shining Eagle" plan will recruit 10,000 user experience officers to capture real-time consumer demand [6][4]. Group 2: Organizational Transformation - The company is undergoing a significant organizational transformation, referred to as the "433" formation, which includes cognitive elevation, capability enhancement, and restructuring paths [7][8]. - The "433" strategy emphasizes four key mindsets: AI thinking, ecosystem thinking, user thinking, and business thinking, along with three driving forces: user-driven, innovation-driven, and competition-driven [8]. Group 3: AI and Technology Development - Honor's core strategy, the Alpha Strategy, outlines a three-step path: creating truly intelligent phones, building a physical AI ecosystem, and exploring human potential in the AGI era [9][22]. - New departments have been established to support this strategy, including AIOS, AI hardware, and AI platform divisions, which will collaborate on data, algorithms, and hardware [9][10]. - The establishment of the New Industry Incubation Department marks Honor's entry into the robotics field, with ongoing recruitment for roles related to AI and robotics [10][22]. Group 4: Cultural and Governance Changes - Honor is redefining its corporate culture around the core value of "real is power," aiming to enhance organizational efficiency, technical research, and ecological collaboration [11][12]. - The company has seen a significant increase in overseas pre-orders for the Honor 400 series, achieving 2-3 times the volume of previous models [12]. - The governance model, termed the "Snow Mountain Model," emphasizes collective leadership and long-term strategic planning [9][10]. Group 5: Market Positioning and Competitive Edge - Honor's strategy aims to create a differentiated core technology competitive advantage through collaboration with partners like Google Cloud and Qualcomm [19][22]. - The Honor 400 series is among the first devices to support cross-system file transfer between "Honor-iOS" and "Honor-Harmony," breaking down operating system barriers [20][21]. - The overall strategy is a systematic project that integrates talent, technology, and market approaches to redefine the company's value paradigm in the AI era [21][22].