TRANSSION(SH:688036) Tai Mei Ti A P P·2025-04-29 09:54Core Viewpoint - Transsion, known as the "King of African Mobile Phones," is facing its biggest market challenge in recent years, with a significant decline in smartphone shipments and financial performance in 2025 compared to 2024 [2][3]. Group 1: Market Performance - In Q1 2024, Transsion's smartphone shipments reached 28.5 million units, capturing 9.5% of the global market, ranking fourth among smartphone manufacturers [2]. - By Q1 2025, Transsion's shipments fell below 22.7 million units, resulting in its exclusion from the top five manufacturers, categorized under "Others" [2]. - Transsion's revenue for Q1 2025 was 13.004 billion yuan, a year-on-year decline of 25.45%, while net profit plummeted by 69.87% to 490 million yuan [2]. Group 2: Financial Indicators - The net profit excluding non-recurring gains for Q1 2025 was 343 million yuan, down 74.64% year-on-year [3]. - Basic earnings per share dropped to 0.43 yuan, a decrease of 70.14% from the adjusted 1.44 yuan in the same period last year [2]. - Operating cash flow for the reporting period was -741 million yuan, worsening from -108 million yuan in the previous year [2]. Group 3: Competitive Landscape - Transsion's performance decline is attributed to increased market competition and rising supply chain costs, which have pressured its gross margin [3]. - The company has historically focused on low-cost models in Africa and Latin America, with entry-level models averaging only $70 [4]. - Rising supply chain costs, particularly for DRAM and NAND Flash, are squeezing profit margins, with expected price increases of 13-20% for these components [5]. Group 4: Market Challenges - In 2024, Xiaomi's sub-brand Redmi aggressively entered the African market with low-cost models, achieving a 22% growth in the region [6]. - Realme also gained traction in Africa, with a 70% year-on-year growth, further intensifying competition for Transsion [6]. - Transsion's expansion efforts in India, Southeast Asia, and Latin America are hindered by established competitors like Vivo, OPPO, and Samsung, limiting its market share [7].