Yangtze River Business Daily News ● Yangtze River Business Daily reporter Xu Jia
"The King of Mobile Phones in Africa" Transsion Holdings (688036. SH) performance rebounded strongly.
According to the annual report, in 2023, Transsion Holdings will achieve operating income of 62.295 billion yuan, a year-on-year increase of 33.69%, net profit attributable to shareholders of listed companies (net profit, the same below) of 5.537 billion yuan, a year-on-year increase of 122.93%, and net profit after deducting non-recurring gains and losses of 5.134 billion yuan, a year-on-year increase of 131.61%.
On the evening of April 24, Transsion Holdings released a quarterly report, the company's operating income for the current period was 17.443 billion yuan, a year-on-year increase of 88.1%, and the net profit and non-net profit were 1.626 billion yuan and 1.354 billion yuan respectively, a year-on-year increase of 210.3% and 342.59%.
According to IDC data, global smartphone shipments will be 1.17 billion units in 2023, a year-on-year decrease of 3.2%. The Yangtze River Business Daily reporter noticed that the overall shipment of mobile phones of Transsion Holdings was about 194 million units that year, a year-on-year increase of about 24.36%, achieving an increase against the trend.
In addition to maintaining the largest market share in the African market, Transsion Holdings also ranks first in South Asia such as Pakistan and Bangladesh.
Based on strong profitability, Transsion Holdings has stepped up its efforts to give back to shareholders. Following the dividend of 2.42 billion yuan in the third quarter, Transsion Holdings plans to pay another dividend of 2.42 billion yuan in the annual report, and will pay a total of 4.839 billion yuan for the whole year, accounting for 87.4% of the company's net profit in 2023.
The annual shipment volume was 194 million units, and the performance stopped falling and rebounded
In 2023, when global smartphone shipments will grow negatively, Transsion Holdings' shipments will increase against the trend.
According to IDC data, global smartphone shipments in 2023 will be 1.17 billion units, down 3.2% year-on-year and the lowest in nearly a decade. According to the annual report, in 2023, Transsion Holdings' overall mobile phone shipments will be about 194 million units, a year-on-year increase of about 24.36%.
According to the annual report released by Transsion Holdings a few days ago, Transsion Holdings will achieve operating income of 62.295 billion yuan in 2023, a year-on-year increase of 33.69%, a net profit of 5.537 billion yuan, a year-on-year increase of 122.93%, and a non-net profit of 5.134 billion yuan, a year-on-year increase of 131.61%.
A reporter from Changjiang Business Daily noticed that in September 2019, Transsion Holdings was listed on the Science and Technology Innovation Board. After listing, from 2019 to 2021, Transsion Holdings achieved operating income of 25.346 billion yuan, 37.792 billion yuan and 49.412 billion yuan respectively, a year-on-year increase of 11.92%, 49.1% and 30.75%, and net profit of 1.793 billion yuan, 2.686 billion yuan and 3.909 billion yuan, a year-on-year increase of 172.8%, 49.8% and 45.52%.
However, due to factors such as the Federal Reserve's interest rate hike, the epidemic, inflation, and sharp fluctuations in the exchange rate of some emerging market countries, consumer demand has declined, and Transsion Holdings' smartphone shipments will decline in 2022, resulting in a decline in the company's performance.
In 2022, Transsion Holdings achieved operating income of RMB46.596 billion, a year-on-year decrease of 5.7%, and net profit and non-net profit of RMB2.484 billion and RMB2.21 billion, respectively, a year-on-year decrease of 36.46% and 28.99%.
As for the rebound in performance in 2023, Transsion Holdings said that the company's new market development strategy has achieved certain results in 2023, consolidating key regions, increasing market share, and increasing overall shipments and sales revenue; 。
According to IDC statistics, in 2023, Transsion Holdings will have a market share of 14.0% in the global mobile phone market, ranking third among global mobile phone brand manufacturers, of which smart phones will have a market share of 8.1% in the global smartphone market, ranking fifth.
On the evening of April 24, the first quarterly report disclosed by Transsion Holdings showed that the company's operating income in the current period was 17.443 billion yuan, a year-on-year increase of 88.1%, and the net profit and non-net profit were 1.626 billion yuan and 1.354 billion yuan respectively, a year-on-year increase of 210.3% and 342.59%.
Expansion of emerging markets, gross profit margin rose to 24.66%
Continued to explore emerging markets and promote product upgrades, the overall shipment volume increased, and the performance of Transsion Holdings improved.
The Yangtze River Business Daily reporter noticed that due to its strong market position in the African market, the market has always called Transsion Holdings "the king of African mobile phones".
According to IDC statistics, in 2023, Transsion Holdings' market share of African smartphones will exceed 40%, ranking first.
Maintaining its competitive edge in Africa, Transsion Holdings is actively expanding into emerging markets. According to IDC data, in 2023, Transsion Holdings will rank first with a market share of more than 40% in Pakistan's smartphone market, Bangladesh will rank first with a market share of more than 30%, and India's smartphone market share will rank sixth with a market share of 8.2%.
Transsion Holdings said that based on the leading advantages accumulated in emerging markets, the company has actively implemented a diversified strategic layout, and has carried out expanded business such as digital accessories and household appliances in emerging markets, as well as providing mobile Internet products and services.
According to the annual report, in 2023, the gross profit margin of Transsion Holdings' main business will be 24.66%, a year-on-year increase of 3.29 percentage points. Among them, the company's operating income in Africa was 22.064 billion yuan, a year-on-year increase of 6.74%, and the gross profit margin was 30.97%, a year-on-year increase of 3.34 percentage points. During the same period, the company's operating income in Asia and other regions was 39.256 billion yuan, a year-on-year increase of 55.19%, and the gross profit margin was 21.11%, an increase of 4.86 percentage points year-on-year.
Due to the increase in mobile phone shipments, in 2023, Transsion Holdings' mobile phone business will achieve operating income of 57.348 billion yuan, a year-on-year increase of 34.88%, and a gross profit margin of 24.18%, a year-on-year increase of 3.57 percentage points. At the same time, due to the continuous implementation of the diversified strategic layout, the revenue of expanded categories such as digital accessories and household appliances, as well as mobile Internet products and services, will increase, and the company's other business income in 2023 will be 3.972 billion yuan, a year-on-year increase of 16.5%, and the gross profit margin will be 31.49%, a year-on-year increase of 0.69 percentage points.
However, with the rapid expansion of revenue scale, Transsion Holdings' R&D expense ratio has decreased. In 2023, the company's R&D expenses will be 2.256 billion yuan, a year-on-year increase of 8.56%, and the R&D expense ratio will be 3.62%, a year-on-year decrease of 0.84 percentage points.
In the first quarter of this year, Transsion Holdings' R&D expenses were 589 million yuan, a year-on-year increase of 10.35%, and the R&D expense ratio was 3.38%, a year-on-year decrease of 2.37 percentage points.
Based on strong profitability, Transsion Holdings has stepped up its efforts to give back to shareholders. According to the annual report, Transsion Holdings intends to distribute a cash dividend of RMB 30 (tax included) to all shareholders for every 10 shares, with an estimated dividend of RMB 2.42 billion, accounting for 43.7% of the company's net profit in 2023. At the same time, Transsion Holdings also plans to use the capital reserve to increase 4 shares for every 10 shares to all shareholders, without giving bonus shares, with a total of 323 million shares, and the company's total share capital will increase to 1.129 billion shares after the conversion.
In the previous third quarter report of 2023, Transsion Holdings distributed a cash dividend of 30.00 yuan (tax included) for every 10 shares, with a total cash dividend of 2.42 billion yuan. To sum up, in 2023, the total amount of cash dividends of Transsion Holdings will reach 4.839 billion yuan, accounting for 87.4% of the company's net profit in 2023.
Visual China Diagram
![A mobile phone that has been used for more than 5 years is not impossible, and the key is to be able to meet these requirements[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)