TRANSSION(SH:688036) Xin Lang Cai Jing·2025-08-08 09:09Core Viewpoint - Transsion Holdings is facing a patent dispute with Huawei, marking the second lawsuit from Huawei, reflecting the intensifying competition in the smartphone market where patent strategies are crucial [1][2]. Group 1: Patent Disputes - Huawei has filed a lawsuit against Transsion Holdings for allegedly infringing on its image display-related patent, specifically patent EP2725797, which was first applied for in June 2011 [1][2]. - Transsion Holdings has been involved in multiple patent disputes, including a previous lawsuit from Huawei in October 2019 regarding wallpaper infringement, where Huawei sought compensation of 20 million yuan [2]. - The ongoing patent disputes highlight the competitive landscape of the smartphone industry, where patent portfolios are becoming a key element of corporate strategy [2]. Group 2: Market Performance - Transsion Holdings reported a revenue of 68.715 billion yuan for the year 2024, a year-on-year increase of 10.31%, but the growth rate has significantly slowed compared to 33.69% in 2023 [4]. - In Q1 2025, the company experienced a revenue decline of 25.45% year-on-year, with net profit dropping by 69.87%, marking three consecutive quarters of declining performance [4]. - The African market, which is Transsion's primary base, saw revenue growth of only 2.97% in 2024, a decrease of 3.77 percentage points compared to the previous year, indicating weakening growth momentum [4]. Group 3: High-End Market Strategy - Transsion Holdings is accelerating its efforts to enter the mid-to-high-end market, as evidenced by the launch of the TECNO PHANTOM Ultimate G Fold, a concept foldable phone [5][6]. - Industry experts caution that the challenges for foldable phones extend beyond hardware, including insufficient market demand and high R&D costs, which may hinder profitability [6]. - The company's strategy to enhance its brand image through concept products is still unproven, and the effectiveness of this approach remains to be seen [6]. Group 4: Non-Mobile Business Development - Transsion Holdings has been diversifying into mobile internet services, digital accessories, and home appliances, with brands like oraimo and Syinix [7]. - However, the contribution of these non-mobile businesses to overall revenue is minimal, accounting for only 4.259 billion yuan, or less than 10% of total revenue in 2024 [7].