On September 6th, the Science and Technology Innovation Board Daily reported (Reporter: Yu Jiaxin) that Shenzhen Transsion Holdings announced a major event. The company received the "Residential Surveillance Notice" and "Filing Notice" issued by the Zhen'an District Supervisory Committee of Dandong City today (September 6th), deciding to take residential surveillance measures and file an investigation against Mr. Xiao Yonghui, the company's Chief Financial Officer. At present, the company has made appropriate arrangements for its relevant work.

According to the disclosure, Xiao Yonghui, born in 1969, with a college degree, has previously worked at Jiangxi Qingjiang Chemical Factory, Ningbo Bird Co., Ltd., and has been the Chief Financial Officer of Shenzhen Transsion Holdings since January 2014. The semi-annual report shows that Xiao Yonghui was granted 0.392 million restricted stocks at the end of the period.

"From a legal point of view, being placed under residential surveillance represents the possibility that the relevant personnel may be subjected to detention by the supervisory authority for suspected illegal or criminal activities. The detained person may face criminal charges and corresponding legal sanctions." A lawyer told the "Science and Technology Innovation Board Daily" reporter.

Shenzhen Transsion Holdings mainly engages in the design, research and development, production, sales, and brand operation of intelligent terminals with mobile phones as the core. Its main products are the TECNO, itel, and Infinix brands, including feature phones and smartphones. The sales area is mainly concentrated in global emerging markets such as Africa, South Asia, Southeast Asia, the Middle East, and Latin America.

According to IDC data, in the first half of 2024, Shenzhen Transsion Holdings' global market share in the mobile phone market was 14.4%, ranking second among global mobile phone brands. The market share of smartphones in the global smartphone market was 9.1%, ranking fourth. Shenzhen Transsion Holdings' market share in the African smartphone market exceeds 40%, ranking first, and is known as the "King of Africa."

In terms of performance, Shenzhen Transsion Holdings' performance has continued to rise. In the first half of this year, Shenzhen Transsion Holdings achieved revenue of 34.56 billion yuan, an increase of 38.07% year-on-year; the net profit attributable to the parent company was 2.852 billion yuan, an increase of 35.70% year-on-year.

While achieving growth in performance, Shenzhen Transsion Holdings has a significant total amount of dividends. According to the disclosed 2024 interim profit distribution plan announcement, the company plans to distribute a cash dividend of 15 yuan (tax included) per 10 shares. At the current total share capital, the total planned cash dividend is RMB 1.694 billion (tax included), accounting for 59.39% of the company's net profit attributable to the parent company in the first half of 2024.

In the latest research and development progress, recently, with the release of Huawei's foldable screen products, related concept stocks have also attracted attention. Shenzhen Transsion Holdings stated on the interactive platform that recently, its subsidiary brand TECNO released the ultra-thin foldable concept phone PHANTOM ULTIMATE 2, which is a concept phone.

However, Shenzhen Transsion Holdings is currently facing operational and patent pressure.

On one hand, in terms of performance, although the performance of Shenzhen Transsion Holdings in the first half of the year is good, the quarterly performance of Q2 has decreased compared to the previous quarter. The gross margin for the first half of the year has also decreased by 2.92 percentage points compared to the same period last year, and the Q2 gross margin is 20.98%, showing a certain degree of decline both year-on-year and quarter-on-quarter.

At the same time, Shenzhen Transsion Holdings is deeply involved in patent disputes. Since July of this year, Qualcomm has successively filed lawsuits against Shenzhen Transsion Holdings and its affiliated companies in relevant courts in India, Germany, and other places, claiming to stop infringement, deliver and destroy products containing the patents in question, and compensate for losses. All cases are currently under trial.

As of today's close, Shenzhen Transsion Holdings is trading at 81.1 yuan per share, a decrease of 1.3%, with a market cap of 91.58 billion yuan.