TRANSSION(SH:688036) Xin Lang Cai Jing·2025-11-26 03:09Core Viewpoint - Transsion Holdings, known as the "King of African Mobile Phones," has initiated the process for a secondary listing in Hong Kong after facing significant challenges, including a 44.97% year-on-year decline in net profit for the first three quarters of 2025 [1][2]. Financial Performance - In the first three quarters of 2025, Transsion Holdings reported revenue of 49.543 billion yuan, a decrease of 3.33% year-on-year, and a net profit of 2.148 billion yuan, down 44.97% [2]. - The company's performance has been declining since the third quarter of 2024, with the 2025 half-year report showing revenue of 29.077 billion yuan, a 15.86% drop, and a net profit of 1.213 billion yuan, down 57.48% [2]. - The stock price has significantly decreased, with a market capitalization of 75.8 billion yuan as of November 12, 2025, compared to a peak of nearly 200 billion yuan [2]. Market Position and Competition - Transsion Holdings has seen its market share in Africa decline from 52% to 47% in the first quarter of 2025, with a shipment drop to 9 million units, making it the only brand among the top five to experience a decline [5]. - The company's revenue in Africa for 2024 was 22.719 billion yuan, with a gross margin decrease to 28.59% [5]. - Competitors like Xiaomi and Honor are intensifying competition, with Xiaomi targeting the low-end market and Honor focusing on high-end products [5]. Supply Chain Challenges - Rising supply chain costs, particularly in the storage chip market, have significantly impacted Transsion's profitability [6]. - The price of DRAM has surged, with a reported increase of over 75% year-on-year for the fourth quarter of 2025, affecting the cost structure of Transsion's products [6]. Strategic Initiatives - To counteract declining growth, Transsion is focusing on AI technology and has invested in developing various AI applications and features for its products [7]. - The company is also diversifying its business model by expanding into home appliances, accessories, and mobile internet services in emerging markets [8]. - Transsion's upcoming Hong Kong listing aims to enhance its international brand image and secure funding for AI research and international marketing efforts [9].