TRANSSION(SH:688036) Sou Hu Cai Jing·2025-08-18 10:05Core Viewpoint - The company is facing significant challenges due to multiple patent infringement lawsuits, which could impact its operations in key markets and its overall financial performance [3][4]. Group 1: Patent Infringement Issues - The company is currently involved in several patent disputes, including a lawsuit from Huawei in Germany regarding image filtering technology [3]. - In June 2024, the company faced lawsuits from NEC and JVC in Brazil related to video compression technology [3]. - Earlier in 2024, the company was sued by Philips in India for unauthorized use of audio standards patents, followed by a lawsuit from Qualcomm in July [3][4]. Group 2: Revenue and Market Position - Over 99% of the company's revenue comes from emerging markets, with a global shipment of 201 million units in 2024, achieving a 14.0% market share, ranking third globally [4]. - The company holds over 40% market share in the African smartphone market, leading the region, while also performing well in South Asia and Latin America [4]. Group 3: ESG Performance and Challenges - The company's ESG rating has improved from CCC to BB over the past three years, but it still lags behind competitors like Xiaomi and Apple, which hold BBB ratings [7][8]. - Environmental performance is a significant area of concern, with the company reporting a 43.56% increase in carbon emissions in 2024, totaling 26,000 tons of CO2 equivalent [10]. - The company lacks detailed disclosures on electronic waste management, which affects its ESG scoring [12]. Group 4: Financial Performance - In Q1 2024, the company reported revenue of 13 billion yuan, a year-on-year decline of 25.45%, with net profit dropping nearly 70% to 490 million yuan [15].