Overseas-focused Transsion Holdings Lists on Hong Kong Stock Exchange, Net Profit Up 46% Year-on-Year

[Ebrun Original] Recently, Shenzhen Transsion Holdings Co., Ltd., a company focused on overseas markets, listed on the Hong Kong Stock Exchange, completing a dual-market structure of "A+H shares." On the first day of listing, the opening price was HKD 34.96 per share, closing at HKD 33.28 per share, with the company's total market value reaching HKD 41.195 billion at the close. It is reported that the H-share issue price for Transsion Holdings was HKD 35.30 per share, with 86.6483 million shares issued, raising total proceeds of approximately HKD 3.059 billion, with net proceeds of HKD 2.968 billion. As a provider of smart terminal products and mobile internet services, Transsion Holdings owns three mobile phone brands: TECNO, Infinix, and itel. Although the product positioning covers mid-to-high-end, young, and mass markets, the phones are mostly priced under 100 yuan or no more than 3,000 yuan, primarily following a cost-performance route. Additionally, Transsion Holdings is advancing a diversified business layout, with existing IoT product brand oraimo, home appliance brand Syinix, and energy storage products and electric mobility devices being newly developed businesses. According to the prospectus, from 2023 to 2025, Transsion Holdings' revenue was RMB 62.295 billion, RMB 68.715 billion, and RMB 65.591 billion, respectively, with gross margins of 23.2%, 20.9%, and 18.7%. Notably, compared to 2024, Transsion Holdings' performance in 2025 in terms of revenue, net profit attributable to parent company, and operating cash flow was not optimistic, all showing negative growth. In particular, net profit attributable to parent company and cash flow were halved, plunging by 53.49% and 56.58%, respectively. The prospectus attributes this mainly to significant price increases in components such as memory chips. However, this downturn showed signs of reversal in the first half of this year. In H1, the company achieved operating revenue of RMB 35.431 billion, up 21.85% year-on-year; net profit attributable to parent company was RMB 1.773 billion, up 46.22% year-on-year, and gross margin recovered to 22.63%. Currently, mobile phones remain the absolute core business for Transsion Holdings, contributing 89.1% of its revenue in 2025. However, due to rising procurement costs, Transsion Holdings reduced shipments last year, coupled with intensified competition in emerging markets, leading to a decline in mobile phone sales by 32.404 million units. Meanwhile, IoT products and other businesses are gradually growing, with their share of revenue exceeding 10% in H1, reaching 11.7%.

Deep cultivation of the African market is a long-term strategy for Transsion Holdings. In terms of sales, Transsion Holdings has secured the top market share in Africa, and also performs well in emerging Asia-Pacific markets including Indonesia and Pakistan, as well as the Middle East, ranking second in market share. Its competitiveness lies in building an extensive channel network, with over 2,900 global distributor partners, and emphasizing overseas local after-sales services, with more than 2,500 service centers. Specifically, in terms of revenue by region, Africa provides the largest revenue source for Transsion Holdings, accounting for 97.7% of revenue in 2025, followed by emerging Asia-Pacific markets, which contribute slightly less at 36.4%. However, recent two-year financial data show a declining trend for Transsion Holdings in the Middle East, Latin America, Central Europe, and Eastern Europe.

Facing the current market situation of core business decline and intensified industry competition, Transsion Holdings is also attempting to find new growth space. The multi-business layout has shown some initial results; for instance, revenue from energy storage products in the first four months of 2026 has exceeded the full-year level of last year, but it still accounts for a low proportion of total revenue, only about 2%. In the future, continuous technology R&D may be a key focus for Transsion Holdings. In the strategic section of its prospectus, "AI" is frequently mentioned, and the use of proceeds also confirms this will be a key focus, as 40% of the net proceeds will be allocated to AI-related technology R&D to help achieve long-term differentiation of its products and services.

Of the remaining net proceeds, 30% will be used for marketing and brand building, 20% will be invested in mobile internet services and IoT products, and the remaining 10% will serve as working capital and general corporate purposes.

This article was first published on the official website of Ebrun.