TRANSSION(SH:688036) Chang Jiang Shang Bao·2025-04-28 00:31Core Viewpoint - Transsion Holdings, known as the "King of Mobile Phones in Africa," is facing increased operational pressure and declining profitability despite a revenue increase in 2024 [1][2]. Financial Performance - In 2024, Transsion Holdings reported revenue of approximately 687 billion yuan, a year-on-year increase of over 10% [1][2]. - The net profit attributable to shareholders was about 55 billion yuan, a slight increase of 0.22% compared to the previous year [1][2]. - The net profit excluding non-recurring items was approximately 45 billion yuan, representing a year-on-year decline of 11.54% [1][2][3]. - This marks the second decline in net profit excluding non-recurring items in the past three years [1]. Market Dynamics - Despite an increase in smartphone shipments, the company attributed the decline in net profit to intensified market competition and a decrease in gross margin [1][5]. - In 2024, the company’s operating cash flow was 28.48 billion yuan, down 76.05% year-on-year, attributed to increased payment obligations [1][9]. - The company’s smartphone market share in Africa exceeded 40%, maintaining its position as the market leader [6]. Competitive Landscape - Transsion Holdings experienced a decline in market share in Africa, dropping from 57% to 51% in the second quarter of 2024, while competitors like Xiaomi and OPPO saw significant growth [7]. - The company’s research and development investment was 25.17 billion yuan, accounting for 3.66% of revenue, indicating a relative weakness in innovation compared to competitors [7]. - Patent disputes with companies like Qualcomm and Nokia may pose risks to operations in key markets [7]. Executive Compensation and Dividends - The total compensation for executives decreased by over 20 million yuan in 2024, with significant reductions for several key executives [1][9]. - The company plans to distribute cash dividends of 34.21 billion yuan, with a dividend payout ratio of 61.65% [8].