TRANSSION(SH:688036) Nan Fang Du Shi Bao·2025-11-03 14:56Core Insights - The core viewpoint of the article highlights the significant revenue growth of Transsion Holdings in Q3 2025, but this growth has not translated into profit, indicating a challenging market environment and increased competition in Africa [2][3]. Financial Performance - In Q3 2025, Transsion achieved a revenue of 20.466 billion RMB, marking a year-on-year increase of 22.60%. However, the net profit attributable to shareholders was 0.935 billion RMB, a decline of 11.06% [2]. - For the first three quarters of 2025, the total revenue was 49.543 billion RMB, a slight decrease of 3.33% year-on-year, while the net profit dropped significantly by 44.97% to 2.148 billion RMB [3][4]. - The net profit excluding non-recurring items was 1.731 billion RMB, reflecting a more severe decline of 46.71% [3]. Market Competition - The competitive landscape in Africa is intensifying, with other Chinese smartphone manufacturers aggressively entering the market, challenging Transsion's previously dominant position [4][6]. - Xiaomi has shown notable growth, ranking third in the African market with a market share increase of 2.6 percentage points to 13.8% in the first half of 2025 [4][5]. - Other brands like Honor, Samsung, OPPO, and Vivo are also expanding their presence, further squeezing Transsion's market share, particularly in the low-end and mid-range segments [4][5]. Cash Flow and R&D Investment - Despite the profit decline, Transsion reported a significant increase in operating cash flow, reaching 3.285 billion RMB, a year-on-year surge of 164.66% [7]. - The company attributed this cash flow improvement to a substantial reduction in payments for raw material purchases [7]. - R&D investment for the first three quarters of 2025 totaled 2.139 billion RMB, up 17.26% year-on-year, indicating a strategic focus on innovation despite profit pressures [8][9]. - In Q3 alone, R&D spending reached 0.777 billion RMB, reflecting a growth rate of 21.22% [9].