In the first half of the year, Shenzhen Transsion Holdings Co., Ltd. achieved revenue of 34.56 billion yuan, a year-on-year increase of 38.07%. The net income attributable to shareholders increased by 35.70% year-on-year, but the revenue and net income in Q2 decreased compared to Q1.
On August 27th, "Science and Innovation Board Daily" (Reporter Guo Hui) Shenzhen Transsion Holdings Co., Ltd. released its financial report for the first half of 2024 and the most important mid-term dividend plan among Science and Innovation Board companies this year.
Financial data shows that in the first half of the year, Shenzhen Transsion Holdings Co., Ltd. achieved revenue of 34.56 billion yuan, a year-on-year increase of 38.07%. The net income attributable to shareholders was 2.852 billion yuan, a year-on-year increase of 35.70%.
Shenzhen Transsion Holdings Co., Ltd. stated that the company adheres to a user-oriented approach, continuously explores emerging markets, promotes product upgrades, and has seen an overall increase in shipments in the first half of the year.
However, when looking at individual quarters, the revenue and net income of Shenzhen Transsion Holdings Co., Ltd. in Q2 both decreased compared to Q1.
In the first half of the year, the gross margin of Shenzhen Transsion Holdings Co., Ltd. also decreased by 2.92 percentage points compared to the same period last year, and the gross margin in Q2 was 20.98%, showing a certain degree of year-on-year and quarter-on-quarter decline.
In addition, Shenzhen Transsion Holdings Co., Ltd. has increased its marketing efforts in the first half of this year, with sales expenses reaching 2.407 billion yuan, a year-on-year increase of 42.61%. The company stated in its financial report that the significant increase in sales expenses is due to the increased market development and brand promotion efforts.
According to statistics from IDC, Shenzhen Transsion Holdings Co., Ltd. has seen an increase in market share and ranking in the global market this year.
In the first half of 2024, Shenzhen Transsion Holdings Co., Ltd. has a market share of 14.4% in the global mobile phone market, ranking second among global mobile phone brands. Among them, the market share of smart phones in the global smart phone market is 9.1%, ranking fourth. In 2023, the company had a market share of 14.0% in the global mobile phone market, ranking third among global mobile phone brands. The market share of smart phones in the global smart phone market was 8.1%, ranking fifth.
Known as the 'King of Africa' in the industry, Shenzhen Transsion Holdings Co., Ltd. mainly focuses its product sales in emerging market countries worldwide. In the first half of this year, Shenzhen Transsion Holdings Co., Ltd. has a market share of over 40% in the African smart phone market, ranking first. In the South Asian market, it ranks first in the smart phone market in Pakistan, Bangladesh, and India, and seventh in the Indian smart phone market.
However, Shenzhen Transsion Holdings Co., Ltd.'s market expansion outside Africa is currently facing unprecedented challenges.
Since July of this year, Qualcomm has filed lawsuits against Shenzhen Transsion Holdings Co., Ltd. and its affiliated companies in relevant courts in India, Germany, and other places, claiming patent infringement and demanding that they cease the infringement, deliver and destroy products containing the patented technology, and compensate for losses. As of now, all cases are still under trial.
Qualcomm mentioned in a statement that Shenzhen Transsion Holdings Co., Ltd. has recently signed a licensing agreement with Qualcomm for some of its products, but the majority of its products have not yet obtained a license from Qualcomm and are still infringing on Qualcomm's valuable patent portfolio. 'Through this lawsuit, Qualcomm seeks to restore and maintain a fair competitive environment for all its licensees.'
Shenzhen Transsion Holdings Co., Ltd. stated that it will continue to negotiate patent licensing fees with patent holders who have demanded excessive fees, while respecting the intellectual property rights of others and promoting the determination of reasonable licensing fees within the framework of fairness, reasonableness, and non-discrimination.
Shenzhen Transsion Holdings Co., Ltd. has issued a risk warning in its semi-annual report, stating that due to the uncertainty of obtaining standard essential patent licenses, the company cannot rule out the possibility of being sued by third-party patent holders, nor can it rule out the possibility of mitigating cost increases by raising product prices.
Of note, with the release of the semi-annual report, Shenzhen Transsion Holdings Co., Ltd. also disclosed a notice on the 2024 interim profit distribution plan. According to the 'STAR Market Daily' reporter's rough statistics, among the STAR Market companies that have released 2024 midterm dividend distribution plans so far, Shenzhen Transsion Holdings Co., Ltd.'s total dividend amount is the highest.
The announcement shows that the company plans to distribute a cash dividend of 15 yuan (including tax) for every 10 shares. Based on the current total share capital calculation, the total planned cash dividend is RMB 1.694 billion (including tax). The semi-annual cash dividend accounts for 59.39% of the company's net income attributable to the parent in the first half of 2024.