①Looking at the performance of Shenzhen Transsion Holdings Co., Ltd., the company's performance fluctuates significantly. After maintaining high growth for multiple quarters in 2023, this year's net income in the second and third quarters decreased compared to the previous year. ②Mainly affected by market competition and comprehensive impact of supply chain costs, the revenue and gross margin rate decreased in the third quarter of 2024, resulting in a year-on-year decrease in gross profit amount. ③Shenzhen Transsion Holdings Co., Ltd. ranked sixth in global smart phone shipments in the third quarter.
"Star Daily" October 28th news (Reporter Yu Jiaxin) Today (October 28th), Shenzhen Transsion Holdings Co., Ltd. released its third quarter performance report.
The announcement shows that Shenzhen Transsion Holdings Co., Ltd. achieved revenue of 51.252 billion yuan in the first three quarters of this year, an increase of 19.13% year-on-year; the net income attributable to shareholders of listed companies was 3.903 billion yuan, a slight increase of 0.5% year-on-year.
Looking at the performance of Shenzhen Transsion Holdings Co., Ltd., the company's performance fluctuates significantly. After maintaining high growth for multiple quarters in 2023, this year's net income decreased in the second and third quarters compared to the previous year. In the third quarter, the company's revenue was 16.693 billion yuan, a decrease of 7.22% year-on-year; net profit attributable to shareholders was 1.051 billion yuan, a decrease of 41.02% year-on-year, a decrease of approximately 14.27% from the previous quarter.
Shenzhen Transsion Holdings Co., Ltd. stated that mainly affected by market competition and the comprehensive impact of supply chain costs, the company's revenue and gross margin rate declined in the third quarter of this year, leading to a year-on-year decrease in gross profit amount.
Shenzhen Transsion Holdings Co., Ltd. mainly engages in the design, research and development, production, sales, and brand operation of intelligent terminals centered around smart phones. Its main products are the TECNO, itel, and Infinix brands, including feature phones and smart phones. Sales are concentrated in emerging market countries such as Africa, South Asia, Southeast Asia, the Middle East, and Latin America.
Shenzhen Transsion Holdings Co., Ltd.'s net cash flow from operating activities in the first three quarters decreased by 89.1% year-on-year to 1.241 billion yuan. The company stated that this was mainly due to a significant increase in cash paid for goods and services compared to the same period last year, primarily because of certain payment terms for purchases during the reporting period. The increase in payments was mainly due to a significant increase in payments for purchases due in January-September 2024 compared to the previous year.
In the first three quarters of this year, the company's total R&D investment amounted to 1.824 billion yuan, a year-on-year decrease of 7.87%. The investment in the third quarter was 0.641 billion yuan, a year-on-year increase of 3.62%.
On September 13th of this year, Shenzhen Transsion Holdings Co., Ltd.'s brand TECNO launched the second generation of the PHANTOM series foldable flagship phones – PHANTOM V Fold2 5G and V Flip2 5G. It stated that the company will continue to release new products in the second half of the year.
On September 7th of this year, Shenzhen Transsion Holdings Co., Ltd. disclosed a "Notice on Major Matters", where the company's CFO, Xia Yonghui, was placed under criminal coercive measures. Ten days later, the company announced that it had received a "Release Notice of Coercive Measures" issued by the Zhen'an District Supervisory Committee of Dandong City, relieving Xia Yonghui from the coercive measures. Currently, the company's production and operation management is normal, and Xia Yonghui can now perform his duties as CFO.
The company recently adjusted the total amount of cash dividends for the first half of 2024. It stated that for the first half of 2024, it plans to distribute a cash dividend of 15.00 yuan (tax inclusive) per 10 shares to all shareholders, with the total cash dividend distribution adjusted from 1693.78692 million yuan (tax inclusive) to 1710.5258625 million yuan (tax inclusive). The proportion of annual cash dividends to the net profit attributable to the shareholders of the listed company in the first half of 2024 is 59.98%.
According to IDC data, the global smart phone shipments in the third quarter of 2024 increased by 4% year-on-year, reaching 0.316 billion units, achieving five consecutive quarters of shipment growth. The top five manufacturers are Samsung, Apple, Xiaomi, OPPO, and vivo.
However, Shenzhen Transsion Holdings Co., Ltd.'s market ranking in the third quarter of 2024 has decreased, slipping from its previous consistent top-five positions to sixth place.
Industry insiders mentioned that this change reflects that maintaining a long-term leading position in the intense market competition is not easy. Currently, the gap between the top five mobile phone manufacturers is narrowing, making the market competition more intense. Despite some improvements in the market environment, the recovery of demand remains unstable, and mobile phone manufacturers are facing increasing challenges and obstacles in driving demand growth.
