On the evening of August 27th, Transsion Holdings (688036) released its semi-annual report for 2024. During the reporting period, the company continued to explore emerging markets and promote product upgrades, leading to an overall increase in shipment volume. It achieved a total operating income of 34.558 billion yuan, a year-on-year increase of 38.07%; the net profit attributable to the shareholders of the listed company was 2.852 billion yuan, a year-on-year increase of 35.70%; and the basic earnings per share were 2.53 yuan.

To further improve the regular dividend mechanism of the listed company and enhance the return on investment for shareholders, the company plans to distribute a cash dividend of 15 yuan (including tax) per 10 shares to all shareholders for the semi-annual period of 2024, totaling a planned cash dividend of 1.694 billion yuan (including tax), accounting for 59.39% of the net profit attributable to the parent company for the period.

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Transsion Holdings is a leading company in the global emerging market for mobile phones. The company has established three major brand mobile phones: TECNO, itel, and Infinix, with products sold in Africa, South Asia, Southeast Asia, the Middle East, and Latin America, among other global emerging market countries. In addition, the company has also founded digital accessories brand oraimo, after-sales service brand Carlcare, and home appliance brand Syinix, and has independently developed smart terminal operating systems such as HiOS, itelOS, and XOS, as well as independent application software platforms.

Since its establishment, the company has focused on overseas operations and management, with rich experience in foreign markets and a deep understanding of emerging markets such as Africa and India, having developed solutions to customer pain points over the years. For example, Transsion mobile phones have introduced a unique beauty feature for dark-skinned individuals, which can locate the eyes and teeth through infrared radiation, activate automatic flash and beauty features for fixed capture; in response to the difficulty of charging, it has launched products with long battery life; and to address the issue of corrosion caused by users' sweaty constitution, it has developed new materials made of regenerated fibers.

With excellent product performance and localized technological innovation, the company has gained a higher market share and extensive brand influence in the African market compared to other mobile phone manufacturers, earning the title of "King of Africa" in the industry.

IDC data statistics show that in the first half of 2024, Transsion Holdings had a market share of 14.4% in the global mobile phone market, ranking second among global mobile phone brand manufacturers. Among smart phones, it had a market share of 9.1%, ranking fourth globally. In the African market, the company's market share of smart phones exceeded 40%, ranking first.

During the reporting period, the company continued to build core competitiveness in the African market, maintaining its competitive advantage, strengthening its moat through systematic capabilities, investing in digitalization, innovating channel models, upgrading the image of retail stores, and promoting localized operations. In terms of expanding into new markets, the company has coordinated multiple brands to deeply adapt to user insights and products, continuously consolidating its share in key new markets.

The company places great emphasis on research and development innovation, continuously improving the maturity of its three-tier research and development system, which includes product development, technology research and development, and basic research. In the first half of 2024, the company further increased its research and development investment to 1.183 billion yuan, a year-on-year increase of 10.32%, all of which were expensed. The research and development results were also fruitful, with 214 new patent applications, 196 newly authorized patents, and 42 new software copyrights added in the first half of the year.

The company believes that from the perspective of industry development, emerging markets such as Africa, South Asia, Southeast Asia, the Middle East, and Latin America have a population base of over 4 billion, with some countries having lower levels of economic development, relatively lagging mobile phone industry development, and a smaller per capita ownership of mobile phones, indicating a large market space. At the same time, with the continuous development of emerging markets, the proportion of smartphones will continue to increase, and there is a significant demand for structural improvement. Emerging markets will become the main source of global mobile phone sales growth in the future.

A research report from Guosheng Securities also indicates that the demand in new markets continues to be positive, and Transsion Holdings, with its core competitiveness accumulated in products, channels, and operations, continues to promote internationalization and globalization, with a broad space for long-term shipment targets. At the same time, the company is actively promoting a high-end strategy, expanding its product categories and mobile internet business, and is expected to fully enjoy the demographic dividend and economic development of emerging markets in the future.