Sales of goods worth 60 billion yuan a year! Shenzhen sales performance soars

In recent years, as global consumers' demand for electronic products and related accessories continues to grow, the digital 3C market has become increasingly hot, and 3C products have become a popular track for going overseas.

Many Chinese brands have also taken advantage of the situation, accelerated their overseas expansion, and achieved soaring performance. Transsion Holdings is one of them, with annual revenue exceeding 60 billion yuan!

Transsion Holdings' annual revenue reached 62.295 billion yuan

Not long ago, Transsion Holdings released its performance report for 2023. In 2023, Transsion Holdings achieved operating income of 62.295 billion yuan, an increase of 33.69% compared with 2022; net profit attributable to shareholders of listed companies was 5.537 billion yuan, a year-on-year increase of 122.93%; the company's overall gross profit margin was 24.45%, an increase of 3.13% compared with 21.32% in 2022.

As the company's performance continues to soar, Transsion Holdings also generously distributes dividends!

In 2023, Transsion Holdings plans to distribute a cash dividend of RMB 2.42 billion including tax, accounting for 43.70% of the company's net profit attributable to shareholders in 2023. Together with the equity distributions that the company has implemented in the first three quarters of 2023, the company's cash dividends for 2023 total approximately RMB 4.839 billion, accounting for 87.40% of the net profit attributable to shareholders in 2023.

At the same time, Transsion Holdings also announced its performance report for the first quarter of 2024. In the first quarter of 2024, the company achieved operating income of 17.443 billion yuan, an increase of 88.1% compared with the same period in 2023; net profit was 1.626 billion yuan, a year-on-year increase of 210.3%; net profit after deducting non-recurring items was 1.354 billion yuan, a year-on-year increase of 342.59%.

Regarding the reasons for the rapid growth in performance, Transsion Holdings said that this was due to the company's continued development of emerging markets and active promotion of product upgrades, and the overall shipments continued to grow; while the company's rapid growth in net profit was due to the growth in revenue and the increase in gross profit. At the same time, the company also built an efficient operating organization and improved operational efficiency to support the implementation of the company's strategy. Benefiting from the growth in scale, the company's expense rate has declined.

According to public information, Transsion Holdings was established in 2013 and is headquartered in Shenzhen. The company focuses on the design, research and development, production, sales and brand operation of smart terminals with mobile phones as the core. Its main products are the three major brand mobile phones of TECNO, itel and Infinix. The sales areas are mainly concentrated in emerging market countries around the world such as Africa, South Asia, Southeast Asia, the Middle East and South America.

Currently, Transsion Holdings' global sales network has covered more than 70 countries and regions, including Nigeria, Kenya, Tanzania, Ethiopia, Egypt, India, Pakistan, Bangladesh, Indonesia, the Philippines, Saudi Arabia, Colombia, Brazil, etc.

Transsion Holdings was successfully listed in 2019. The company went through two rounds of financing before its listing.

On November 25, 2016, Transsion Holdings completed equity financing. The amount of financing was not disclosed to the public. The investor was Yuanke Equity.

On June 22, 2017, Transsion Holdings completed its Series A financing. The amount of financing was not disclosed to the public. The investors were Jiankun Group, Maixing Investment, Hongtai Fund and Beijing Ruili Investment.

On September 30, 2019, Transsion Holdings was successfully listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange. 80 million shares were publicly issued at a price of RMB 35.15 per share, with a total amount of funds raised of RMB 2.812 billion. The total share capital after the issuance was 800 million shares. The closing price on the day was RMB 57.80, a sharp increase of 64.44%, and the market value reached RMB 46.2 billion.

In the year of its listing, Transsion Holdings' revenue reached 25.35 billion yuan and its net profit was 1.793 billion yuan.

After going public, Transsion Holdings' performance has experienced rapid growth. Two years later , in 2021, Transsion Holdings' revenue has reached 49.41 billion yuan, and its net profit is 3.909 billion yuan, with revenue growth of 95% and net profit growth of 118%. In 2021, Transsion Holdings' revenue scale ranked first among companies listed on the Science and Technology Innovation Board.

How does Transsion Holdings quickly break through in emerging markets?  

The African market is an important market for Transsion Holdings.

Many people are not optimistic about the African market, believing that its infrastructure and economy are backward, but Transsion Holdings does not think so.

Zhu Zhaojiang, the founder of Transsion Holdings, once worked for the state-owned Bird Mobile Phone Company and volunteered to develop the African market. Later, as Bird Mobile Phone Company declined, Zhu Zhaojiang decided to start his own business.

Transsion Holdings was established in August 2013. In just seven years, the company sold mobile phones all over Africa and was known in the industry as the "King of Mobile Phones in Africa."

At the beginning of the company's establishment, Transsion Holdings focused on the research and development of mobile phones and launched two major mobile phone brands, TECNO and itel. Later, it set its sights on the African market.

To successfully break into new markets, accurate market positioning is a must. Transsion Holdings has a deep understanding of the local communication environment and user needs in Africa, and has customized the "four-card, four-standby" function, thus solving the problem of local users having to carry multiple phone cards due to unstable operator signals.

On the other hand, due to frequent power outages in Africa and hot weather with large temperature differences between morning and night, Transsion Holdings has developed ultra-long standby functions, low-cost high-voltage fast charging technology, sweat-proof USB ports, and new wear-resistant and sweat-resistant ceramic materials to precisely meet the needs of local consumers.

The camera function of mobile phones is also very critical. Since Africans have darker skin, it is difficult to be recognized in photos. Therefore, Transsion Holdings has developed a camera technology based on eye and tooth positioning, as well as a function that can still take high-quality photos in low-light environments.

In the African market, consumers are generally sensitive to prices, and the mobile phone market is dominated by low-end products. Based on this market characteristic, Transsion has improved the cost-effectiveness of its products and launched mobile phones priced lower than its peers, attracting a wide range of consumer groups.

In addition to the above factors, continuous technological innovation and R&D investment are also important reasons for Transsion Holdings to win in the market. Technological innovation is one of the core strategies of Transsion Holdings. The company has been increasing its R&D investment and building a three-level R&D system of basic research, technology R&D and product development. Through continuous technological innovation, the terminal experience of mobile phone users and the competitiveness of products have been improved, and Transsion Holdings has continuously launched new products that meet market demand .

On the other hand, Transsion Holdings is also actively expanding into emerging markets and business areas. In addition to the smartphone business, the company has also entered the fields of mobile Internet, smart hardware, cloud computing, etc. , making a diversified layout to enhance the company's brand influence and market competitiveness and increase the company's revenue.

In addition to the African market, Transsion Holdings is actively expanding into new markets. By understanding the local market environment and market demand, Transsion Holdings has formulated targeted market strategies. With the experience and advantages of products, channels, and supply chains, Transsion has replicated the "Africa's growth myth" in countries and regions such as India, Pakistan, Indonesia, Eastern Europe, and Latin America.

According to IDC research data, Transsion Holdings' share of the global mobile phone market reached 14.0% in 2023, ranking third among global mobile phone brand manufacturers. Among them, its share of the global smartphone market was 8.1%, ranking fifth.

In 2023, Transsion Holdings performed very well in many overseas markets. Its market share in Africa and Pakistan exceeded 40%, and its market share in Bangladesh exceeded 30%, ranking first in both local markets; its market share in India was 8.2%, ranking sixth.

In the future, Transsion Holdings will also open up a new growth curve.

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