Recently, a notice about Shenzhen Tongda Electronics Co., Ltd. (hereinafter referred to as “Shenzhen Tongda”) shutdown and vacation was circulated on the Internet.
This document with the official seal of “general manager’s office of Shenzhen Tongda Electronics Co., Ltd.” shows that due to the cancellation of the development of overseas new projects, the fierce competition in the domestic e-cigarette business, and the unpredictability of new projects, it was decided to arrange the overseas project development team to temporarily suspend work for 6 months, pay wages normally in the first month, pay 80% of the local minimum wage in the next five months, and continue to pay social security and provident fund within six months, During this period, employees shall not establish labor relations with other companies
The reporter asked the personnel manager of Shenzhen Tongda for confirmation of this news, but the other party did not deny it. He said that due to the shortage of new projects and the redundancy of the original R & D team, more than a dozen people were allowed to take a temporary holiday and return to work depending on the situation; Other businesses in the factory operate normally, workers work normally, and wages are paid normally
The business of electronic cigarette business is announced to be closed this time. The main customers of this sector, Smoore and FirstUnion Group, are both leaders in the manufacturing field of atomized electronic cigarette equipment( vape). Among them, the profit warning released by Smoore on July 15 showed that due to the Shenzhen epidemic and other factors, the operating condition in the first quarter of 2022 was poor (the total profit and comprehensive income decreased by about 46.0% to 54.1% year-on-year). This may explain the shutdown of Shenzhen Tongda e-cigarette business, but also expose the problem of over concentration of its customers.
Post time: Jul-28-2022
