TRANSSION(SH:688036) Xin Lang Cai Jing·2025-07-31 01:37Core Viewpoint - Transsion Holdings, known as the "King of Mobile Phones in Africa," is reportedly planning a secondary listing in Hong Kong to raise approximately $1 billion, following its 2019 debut on the STAR Market in China. This move comes amid declining market share and increasing competition in Africa, where its smartphone market share has dropped from 47% to 42% [3][6][7]. Group 1: Company Overview - Transsion Holdings was founded in Huaqiangbei, Shenzhen, and has successfully captured a 40% market share in Africa by focusing on local needs and preferences, such as camera optimization for darker skin tones and multi-SIM capabilities [4][5]. - The company has three major brands: TECNO, itel, and Infinix, covering a wide price range from budget feature phones to mid-range smartphones, and has become a household name in several African countries [5][6]. Group 2: Financial Performance - In 2024, Transsion's revenue reached approximately 68.743 billion yuan, with Africa contributing around 22.7 billion yuan and a gross margin of 28.6%, making it a significant cash cow for the company [5][6]. - However, the first quarter of 2025 saw a 25.45% year-on-year decline in revenue and a staggering 69.87% drop in net profit, indicating serious challenges in maintaining growth [6][9]. Group 3: Market Dynamics - The smartphone market in Africa is becoming increasingly competitive, with brands like Samsung and Xiaomi gaining ground through differentiated strategies, leading to a decline in Transsion's market share [6][9]. - The overall smartphone shipment volume has stagnated globally, forcing companies to adapt to a more competitive environment characterized by price erosion and longer replacement cycles [8][9]. Group 4: Strategic Initiatives - In response to market pressures, Transsion is exploring new business avenues, including entering the electric motorcycle market in Africa and developing a foldable smartphone to target the high-end segment [6][9]. - The potential secondary listing in Hong Kong is seen as a critical move to secure funding for these strategic initiatives and to counteract the pressures from competitors [7][10].