Author | Huang Yu Editor | Liu Baodan Last year, thanks to the success of the "Speeding" on iQiyi, the company has had a difficult time recently. On the one hand, the explosively popular TV series is on hiatus, and on the other hand, the derivative concert of the variety show "Plant Some Goodness" has been criticized for "free offline but paid online." According to Wall Street News, the second Wheat Field Music Festival, produced by iQiyi's reality show "Plant Some Goodness," was held on June 6th. Some viewers had previously received free offline tickets through official activities, while online viewers, even iQiyi members, had to pay RMB 12 for viewing, and the viewing period was valid until June 14th. This differentiated pricing model has caused dissatisfaction among many viewers, who question that iQiyi's move is "cutting corners." In response, iQiyi's customer service said, "You can buy tickets to watch the concert live according to your own needs, and the edited content of the concert will be launched on the main platform in the future." In fact, this is not the first time that long video platforms represented by iQiyi have been accused of "cutting corners." In recent years, membership grading systems, early access, and inventory restrictions have often caused user backlash, in addition to paying extra for derivative programs. The differential pricing model reflects the growth anxiety faced by long-form video platforms such as "i优腾."

In today's weather is good. Today's weather is good.

Lasting for 10 days, shenzhen transsion holdings co., ltd., the world's second largest mobile phone brand with its headquarters in China but core business in emerging markets such as Africa, managed to settle the financial turmoil surrounding its chief financial officer.

On September 17, shenzhen transsion holdings co., ltd (SH: 688036) announced that the company recently received a "Release Detention Notice" issued by the Zhen'an District Supervisory Committee of Dandong City, indicating that the Zhen'an District Supervisory Committee has lifted the detention measures against shenzhen transsion's CFO, Xiao Yonghui. Currently, the production and operation management of shenzhen transsion is normal, and Xiao Yonghui has been able to perform his duties as CFO.

The incident involving Xiao Yonghui being caught up in an investigation dates back to September 7th when shenzhen transsion announced that on September 6th, the company received a "Detention Notice" and a "Filing Notice" issued by the Zhen'an District Supervisory Committee of Dandong City, deciding to detain Xiao Yonghui and conduct an investigation.

Despite shenzhen transsion's emphasis at the time that proper arrangements had been made for Xiao Yonghui's relevant work and that the matter would not have a significant impact on the company's normal operations, speculation in the market following the news still led to various speculations and subsequently caused shenzhen transsion's stock price to fluctuate on the first trading day after the announcement.

After the opening on September 9th, Transsion's stock price once fell by more than 8%. As of the closing that day, Transsion's stock price was around 77.05 yuan per share, a decrease of 4.99%, with a total market value of 87 billion yuan.

Now, with the calming of the investigation storm, investors have taken a sigh of relief, and Transsion's stock price has also responded by rising, up 4.22% to 79.5 yuan per share on September 18.

Nevertheless, the current Transsion is still in a period of low stock prices.

Starting from April 19th this year, Transsion's stock price has been showing an overall downward trend. Compared to the closing price of 120.3 yuan per share on April 18th, Transsion's stock price has now dropped by about 34%.

Behind the sharp decline in Transsion's stock price is mainly due to the bearish impact of slowing revenue growth, patent disputes, and other factors.

Known as the "King of African Phones," Shenzhen Transsion Holdings Co., Ltd., among Chinese mobile phone brands, has always been a unique presence, focusing on Africa as its core market since its inception. For more than a decade, Transsion has avoided the intense competition in the domestic mobile phone market, relying on the three major brands of TECNO, itel, and Infinix to quietly reap profits in emerging markets, represented by Africa.

In terms of revenue scale, Transsion has more than doubled from 25.3 billion yuan in 2019 to 62.3 billion yuan in 2023, while the net income attributable to shareholders during the same period has risen from 0.66 billion yuan to 5.5 billion yuan in 2023.

As the founder and actual controller of Transsion, Zhu Zhaojiang is a regular on the Hurun Global Rich List, with a net worth reaching 16 billion yuan in 2024.

According to IDC data, in the first half of this year, Transsion's market share in the global mobile phone market is 14.4%, ranking second among global mobile phone brands, with a smart phone market share of 9.1% globally, ranking fourth. In the African market, Transsion's smart phone market share in Africa exceeds 40%, ranking first.

However, while striving for the top spot, Transsion's growth in its African stronghold has shown a slight softening trend. Financial reports show that in 2022, Transsion's revenue in the African region experienced negative growth, with last year's rebound to 22.063 billion yuan, but still short of the 24.238 billion yuan high point in 2021.

In search of new performance growth points, Transsion has also been actively expanding in more overseas emerging markets, including South Asia, Southeast Asia, the Middle East, Latin America, and others. In 2021, Transsion's revenue in Asia and other regions exceeded Africa for the first time, reaching 39.3 billion yuan by 2023, far surpassing Africa.

Nevertheless, this year, there are signs of a slowdown in Transsion's overall performance. In the second quarter of 2024, Transsion achieved revenue of 17.115 billion yuan, an 8.63% year-on-year increase, but a 1.88% decrease from the previous quarter; net income attributable to shareholders was 1.226 billion yuan, a 22.31% year-on-year decrease, and a 24.65% decrease from the previous quarter.

This situation is also reflected in the smart phone market. IDC data shows that in the first quarter of 2024, Transsion's global smart phone market share was 9.9%, ranking fourth globally. However, in the second quarter, it fell out of the top five global smart phone market.

IDC China Research Manager Guo Tianxiang stated that Transsion planned well last year by predicting the global economy downturn early and the greater demand for low-end products. However, this year, Xiaomi and Vivo have both focused on the ultra-low-end market, below $100 (approximately 710 yuan), intensifying competition in the low-end market where Transsion operates.

In addition to the challenges of market expansion, Transsion is also facing concerns about patent litigation. Starting in July of this year, Qualcomm filed patent infringement lawsuits against Transsion and its related subsidiaries in India, Germany, and other relevant courts, demanding the cessation of infringement, delivery and destruction of products containing the patents in question, and compensation for losses. All cases are currently under review.

Transsion believes that in the countries of more than 70 emerging markets covered by the company's sales network, some patent holders are demanding excessive license fees based on a globally unified rate, without considering the differences in economic development levels in different regions, the lack of patents or only a few patents in specific areas or markets, and the existence of different rates in different regions in previous cases. The company will continue to engage in patent negotiations with third parties, while respecting the intellectual property rights of others, to promote the determination of reasonable license fees under the principles of fairness, reasonableness, and non-discrimination.

Already standing at the center of the global stage, shenzhen transsion holdings co., ltd. will inevitably encounter more challenges in the future, as well as direct competition with other smart phone giants. To maintain its advantageous position in emerging markets, shenzhen transsion holdings co., ltd. must seize new opportunities such as asia vets, and build a deeper moat.