New stock news | Shenzhen Transsion Holdings Co., Ltd. (688036.SH) submits application to Hong Kong Stock Exchange, company's mobile phone sales ranks first in global emerging markets.

According to the disclosure by the Hong Kong Stock Exchange on December 2nd, Shenzhen Transsion Holdings Co., Ltd. (referred to as Shenzhen Transsion Holdings Co., Ltd., 688036.SH) submitted an application to the Hong Kong Stock Exchange's main board, with CITIC SEC as its exclusive sponsor. According to Frost & Sullivan, based on 2024 mobile phone sales figures, Shenzhen Transsion Holdings Co., Ltd.'s mobile phone products are ranked first in the global emerging markets, with a market share of 24.1%. The prospectus shows that Shenzhen Transsion Holdings Co., Ltd. is a leading global provider of smart terminal products and mobile internet services. The company is mainly engaged in the design, research and development, production, sales, and brand operation of smart terminal products with phones as the core. Building brand awareness among a wide and growing user base with its mobile phone business, the company has expanded into mobile internet services, IoT products, and other products, creating a product, service, and brand ecosystem. Since its establishment in 2013, Shenzhen Transsion Holdings Co., Ltd. has been deeply cultivating emerging markets, with Africa as a representative. With leading market share and broad brand influence, the company has earned the reputation of "King of Africa" in the mobile phone industry. Leveraging deep insights into user needs accumulated in the African market, the company is able to replicate successful models in different emerging markets. Shenzhen Transsion Holdings Co., Ltd. has achieved leading market positions in major emerging markets and even the global market. Highlights of Shenzhen Transsion Holdings Co., Ltd.'s business include: The company primarily offers smart phones under three brands: TECNO, focusing on high-end designs for middle to high-end consumers; Infinix, with stylish designs targeting young consumers; itel, emphasizing cost-effectiveness and reliability for mass market consumers. In addition to phones, Shenzhen Transsion Holdings Co., Ltd.'s products and services also include mobile internet services, IoT products, and other IoT products. According to Frost & Sullivan, based on 2024 mobile phone sales figures, Shenzhen Transsion Holdings Co., Ltd. ranks first in Africa with a market share of 61.5%. The African market is in the transition from feature phones to smartphones. During the historical period, the company's smartphone sales in the African market continued to rise, mainly due to the company's broad brand influence in the African market and its phones meeting local market needs; economic development and consumption upgrades in Africa are driving local consumers to purchase smartphones; and the strong sales of the company's feature phones have laid a solid foundation for the transition to smartphones. Shenzhen Transsion Holdings Co., Ltd. has established a solid and lasting market position in all major emerging markets and even the global market. According to Frost & Sullivan, based on 2024 mobile phone sales figures, the company ranks first in emerging markets in the Asia-Pacific region and the Middle East, with market shares of 15.4% and 22.8% respectively. Financial Information Revenue In the fiscal years of 2022, 2023, 2024, and the six months ended June 30, 2025, the company recorded revenues of RMB 46.596 billion, RMB 62.295 billion, RMB 68.715 billion, and RMB 29.077 billion respectively. During the historical period, the company generated most of its revenue from mobile phone sales. Gross Profit and Gross Profit Margin In the fiscal years of 2022, 2023, 2024, and the six months ended June 30, 2025, the company recorded gross profits of RMB 9.255 billion, RMB 14.440 billion, RMB 14.341 billion, and RMB 5.533 billion, with corresponding gross profit margins of 19.9%, 23.2%, 20.9%, and 19.0%. Net Profit In the fiscal years of 2022, 2023, 2024, and the six months ended June 30, 2025, the company recorded net profits of RMB 2.467 billion, RMB 5.587 billion, RMB 5.597 billion, and RMB 1.242 billion respectively. Industry Overview Since the widespread popularity of mobile phones since 2010 and the increasingly mature mobile internet technology, the global mobile phone market and mobile internet services market have shown strong growth and continuous transformation. By 2024, the global mobile phone market size had reached USD 0.5 trillion and is expected to reach USD 0.6 trillion by 2029, with an annual compound growth rate of 4.6% from 2024 to 2029. The development of mobile phones has also driven the development of mobile internet. In 2024, the global mobile internet services market size was USD 2.9 trillion, and it is expected to reach USD 7.6 trillion by 2029, with an annual compound growth rate of 21.5% from 2024 to 2029. In 2024, the mobile internet penetration rate in emerging markets was 46%, lower than that of developed markets, and is expected to further increase to 53% by 2029. The steady increase in mobile internet penetration rate indicates a huge growth potential in the mobile phone market and mobile internet services market. As more users access the internet through mobile devices, the demand for upgrading smartphones and diverse mobile internet services will continue to expand. In terms of income, the size of the emerging market mobile phone market increased from USD 134.4 billion in 2020 to USD 171.1 billion in 2024, with an annual compound growth rate of 6.2% from 2020 to 2024. It is expected to further increase to USD 236.7 billion by 2029, with an annual compound growth rate of 6.7% from 2024 to 2029. In the mobile phone market, the smartphone segment is expected to increase from USD 168.3 billion in 2024 to USD 234.9 billion in 2029, with an accelerated annual compound growth rate of 6.9% from 2024 to 2029. By sales volume, the size of the emerging market smartphone market increased from 624.6 million units in 2020 to 648.5 million units in 2024, with an annual compound growth rate of 0.9% from 2020 to 2024. It is expected to reach 725.3 million units by 2029, with an annual compound growth rate of 2.3% from 2024 to 2029. During this period, Africa is expected to be the fastest-growing region, with smartphone sales increasing from 86.7 million units in 2024 to 110.0 million units in 2029, with an annual compound growth rate of 4.9%. The size of the emerging market mobile internet services market increased from USD 419.5 billion in 2020 to USD 848.1 billion in 2024, with an annual compound growth rate of 19.2% during this period. Looking ahead, it is expected that this market will further grow to USD 2.7883 trillion by 2029, with an annual compound growth rate of 26.9% from 2024 to 2029. As the network infrastructure in emerging markets continues to improve and cross-scene connectivity technologies become more advanced, IoT products can be applied in various scenarios such as homes, travel, and workplaces. The size of the emerging market IoT product market increased from USD 81 billion in 2020 to USD 135.5 billion in 2024, with an annual compound growth rate of 13.7%. It is expected to further increase to USD 328.4 billion by 2029, with an annual compound growth rate of 19.4% from 2024 to 2029. With the continuous advancement of AI technology, IoT products are moving towards integrated development across devices and scenarios, achieving data sharing and functional coordination between different products. This development will further enhance user experience and support continuous market growth. Board of Directors Information The board of directors will consist of 10 directors, including six executive directors and four independent non-executive directors. Ownership Structure Mr. Zhu Zhaojiang holds a 46.71% stake through Transsion Investment, CSAML holds 6.22%, Beijing Chunglai holds 5.39%, and other A-share shareholders collectively hold 41.68%. Transsion Investment is an employee shareholding platform established before the A-share listing, rather than aimed at consolidating control of the company to Mr. Zhu. According to the articles of association of Transsion Investment, although Mr. Zhu holds only a 20.68% stake, he has the right to exercise 67.00% of the voting rights. Therefore, under the Securities and Futures Ordinance, Mr. Zhu is considered to have an interest in the shares held by Transsion Investment. The shares are held by CSAML on behalf of Digimoc Holdings Limited, with CSAML being a financial product asset management account established for investment in A shares, with all funds provided by Digimoc Holdings Limited. According to the limited partnership agreement of Beijing Chunglai, decisions of Beijing Chunglai must be determined by the limited partners at the general partners meeting, with each limited partner having one vote regardless of the amount of ownership. When conducting business for Beijing Chunglai, the general partners must adhere to the decisions reached at the general partners meeting. To the best knowledge of the directors, as of the latest practicable date, no A-share shareholder holds more than 5% ownership in the company. Intermediary Team Sponsor: CITIC SEC (HK) Ltd. Financial Advisor: J.P. Morgan Securities (Asia Pacific) Limited. Legal Advisor on Hong Kong and US Law: King & Wood Mallesons (Hong Kong) LLP; on Chinese Law: JT&N Shenzhen Office. Legal Advisor for the Exclusive Sponsor: on Hong Kong and US Law: Gibson, Dunn & Crutcher LLP; on Chinese Law: JunHe LLP. Independent Auditor and Reporting Accountant: Deloitte Touche Tohmatsu. Industry Consultant: Frost & Sullivan Consulting (Beijing) Co., Ltd. Shanghai Branch. Compliance Consultant: Red Sun Capital Limited.