Core Viewpoint - Transsion Holdings, known as the "King of African Mobile Phones," has officially initiated its 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 [2][3]. Financial Performance - For 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% [3]. - The company's half-year report for 2025 showed even more severe results, with revenue of 29.077 billion yuan, a decline of 15.86%, and a net profit of 1.213 billion yuan, down 57.48% year-on-year [3]. - The stock price as of November 12, 2025, was 65.85 yuan per share, with a total market capitalization of 75.8 billion yuan, significantly down from a peak market value of nearly 200 billion yuan [3]. Market Position and Competition - Transsion Holdings has seen its market share in Africa decline from 52% in Q1 2024 to 47% in Q1 2025, with a shipment drop to 9 million units, making it the only brand among the top five to experience a decline [4][5]. - Despite a slight recovery to 51% market share in Q2 2025, competitors like Xiaomi and Honor have been gaining ground, with Xiaomi's shipments increasing by 32% and Honor's by 161% [5]. Supply Chain and Cost Pressures - The company faces significant pressure from rising supply chain costs, particularly in the storage chip market, which has seen prices increase due to high demand driven by AI applications [6]. - DRAM prices have surged nearly 70% for server contracts and 20-30% for NAND contracts in Q4 2025 compared to the previous year, impacting Transsion's cost structure [6]. Strategic Initiatives - In response to market challenges, Transsion is focusing on developing mid-to-high-end models and enhancing its product offerings [7]. - The company is also investing in AI technologies and diversifying its business into home appliances and digital accessories, aiming to create a comprehensive ecosystem [8][9]. Listing Rationale - The decision to pursue a secondary listing in Hong Kong is aimed at enhancing the company's competitive edge, improving its international brand image, and diversifying its financing channels [10]. - The funds raised from the listing are intended for R&D in AI technologies, expanding international marketing, and strengthening the company's operational capabilities [11].