New Stock Preview | Second Evolution of "African King": Shenzhen Transsion Holdings Co., Ltd. Goes Public in Hong Kong, Opening a New Chapter in AI and Intelligent Ecosystems.

Recently, Shenzhen Transsion Holdings Co., Ltd., known as the "King of Africa" in the mobile phone industry, has officially submitted an application to list H shares on the Hong Kong Stock Exchange after successfully listing on the Science and Technology Innovation Board for six years. As a leading global provider of smart terminals and mobile internet services, Transsion has established a dominant position in its target markets of Africa, South Asia, and the Middle East through deep localization, technological innovation, and a multi-brand strategy. The purpose of this H-share listing is not only to diversify financing channels and optimize capital structure, but also to raise funds to support its strategic transformation into a smart ecosystem service provider covering mobile internet services, energy storage, and electric mobility. How will Shenzhen Transsion Holdings Co., Ltd. chart its second growth curve driven by technological innovation with this listing in Hong Kong? Market share stability and performance pressure: Seeking certainty amid cyclical fluctuations Since 2013, when Transsion began focusing on emerging markets such as Africa, with deep insights into local user needs and a multi-brand operational model, it quickly established a dominant position in the industry, earning the title of "King of Africa." According to Frost & Sullivan's statistics, by 2024, Transsion is the world's largest mobile phone provider in emerging markets, with a market share of 24.1%. The company holds 61.5% market share in Africa, and ranks first in the emerging Asia-Pacific and Middle East markets. The companys strong market position has ensured sustained growth in its financial performance, with total revenue steadily increasing from RMB 46.596 billion in 2022 to RMB 68.715 billion in 2024, and net profit increasing significantly from RMB 2.467 billion in 2022 to RMB 5.597 billion in 2024. However, in the first half of 2025, the company's performance fluctuated, with revenue decreasing from RMB 34.6 billion in the same period of 2024 to RMB 29.1 billion, and gross margin declining from 20.8% to 19.0%, mainly due to adjustments in the smartphone product release cycle and increased competition in emerging markets. Facing these challenges, the company has continued to increase research and development investment to maintain technological leadership, with R&D spending reaching RMB 2.517 billion in 2024, accounting for 3.7% of total revenue, and further increasing to 4.7% in the first half of 2025 to ensure competitive advantage through product differentiation. With this H-share listing, Shenzhen Transsion Holdings Co., Ltd. aims to widen its fundraising channels, optimize its capital structure, and provide sufficient financial support for its continuous expansion in emerging Asia-Pacific, Middle East, and Latin American markets outside of Africa, in order to replicate its success in Africa and achieve sustainable global market share growth in these regions. Energy storage and electric mobility: The next "growth miracle"? Looking at the long-term, Transsion's future growth strategy is to build a smart ecosystem system driven by its strong mobile phone business, transitioning from a hardware sales model to a model driven by mobile internet services and diversified IoT products. This strategy is based on structural opportunities in the global emerging markets. According to F&S analysis, emerging markets are the main driver of global mobile market growth, with the mobile market expected to grow at a compounded annual growth rate of 6.7% from 2024 to 2029, higher than the global market growth rate forecast of 4.6% during the same period. The growth is mainly due to the increasing per capita disposable income, large population base, and continuous acceleration of smartphone penetration in emerging markets. It is expected that by 2029, the smartphone penetration rate in emerging markets will further increase to 85.4%. Transsion's transition from pure hardware sales to a smart ecosystem system driven by mobile phones and multi-business synergies is aimed at using its large user base as a traffic entry point to drive the development of high-growth services and products. In terms of mobile internet services, based on its independently developed Transsion OS, Transsion had over 270 million monthly active users as of June 30, 2025. Its application portfolio includes the app distribution platform Palm Store, the music platform Boomplay co-incubated with NetEase, and the content distribution platform Phoenix developed in collaboration with Tencent. Currently, although mobile internet services have high gross margins, reaching 78.0% in the first half of 2025, their contribution to total revenue is still relatively low, accounting for 1.4% in the first half of 2025. As for IoT products and other businesses, the company is actively deploying in high-growth emerging sectors, with a product portfolio including laptops, smart wearables, and home appliances. TWS headphones ranked first in terms of revenue in the African market in 2024. Additionally, another key strategic focus is on energy storage products and lightweight electric mobility devices. To address the issue of unstable power supply in Africa, Transsion has launched itel Energy and DYQUE Energy brands, offering energy storage products such as hybrid inverters, lithium battery modules, and solar panels. The company has also introduced Revoo for personal users and TankVolt for commercial users, which include two-wheel and three-wheel electric mobility devices. According to F&S forecasts, the market size of mobile internet services, IoT products, energy storage products, and lightweight electric mobility devices in the global emerging markets is expected to grow rapidly at compounded annual growth rates of 26.9%, 19.4%, 16.4%, and 15.6% from 2024 to 2029. To support this ecosystem reshaping and maintain technological leadership, Transsion plans to use the funds raised from the H-share listing for AI-related technologies, including strengthening AI capabilities, developing AI assistants and intelligent agents, upgrading Transsion OS, and enhancing mobile imaging capabilities, indicating that the company is leveraging AI technology as the core driver of future product iteration and differentiation. However, despite the broad prospects for growth in emerging businesses, their contribution to overall revenue still needs to be validated over time. Overcoming challenges such as infrastructure development will be necessary to promote electric vehicles and energy storage devices in markets like Africa. The road to this long-term strategic transformation will require validation from the market.