Industry News

Transsion Fails King Of Africa Is Now Facing Major Setbacks

The mysterious Chinese company that ate in the African mobile phone market accidentally folded A shares. ”

Transsion Holdings, a domestic mobile phone maker that has built a world in Africa, has tried to use the backdoor to land A shares, but it has suffered a disastrous defeat.

On June 13, New Territories Pump Group Co., Ltd. (hereinafter referred to as the New Territories Pump Industry) issued an announcement stating that during the suspension of the company's stock suspension to the termination of this major asset restructuring decision, the company repeatedly communicated and negotiated with the counterparty, and the parties to the transaction failed. In agreement with the important terms of the trading plan, the company decided to terminate planning for the reorganization.

According to the announcement, the assets proposed for this major asset restructuring are not less than 51% of the shares of Shenzhen Transsion Holdings Co., Ltd. (hereinafter referred to as “Transsion Holdings”), and the controlling shareholder of Transsion Holdings is Shenzhen Transsion Investment Co., Ltd., with actual control. Artificially Zhao Jiang.

In other words, Transsion's plan for a backdoor listing has failed.

When it comes to domestic mobile phone brands, what most people can think of is Huawei's millet, OPPO, and vivo. However, there is another domestic mobile phone brand, wall flower wall outside the incense, although it is not famous in the country, but it is occupying the African mobile phone market share "boss", people sent "king of Africa" nickname, this phone The vendor is Transsion.

Transsion was founded in 2006 by Bo Zhaojiang, deputy general manager of sales of Waveguide mobile phones. Initially, Transsion relied on its OEM business for handset brands in Southeast Asia.

A few years later, the global mobile phone market entered the era of replacement of functional machines to smart machines. Nokia's building collapsed and Apple emerged as a new star. This market in the Red Sea has attracted a large number of capitals. All those who had previously made mobile phones have not made mobile phones. Everyone has run to make mobile phones.

After analyzing the global market, Transsion founder Zhao Zhaojiang chose to avoid the fierce domestic smart phone market, but chose a desolate Africa mobile phone market at that time.

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In Africa of that time, many places did not even have a signal base station at all, and they could not use mobile phones. Many Africans also used feature phones at that time.

Relying on the rich resources accumulated in the functional machine era, Transsion Technology quickly entered the local market and developed a number of popular products in combination with the local market, such as mobile phones with marquees, mobile phones with four speakers, and so on. The sturdy Africans are very popular there.

As of the first quarter of 2018, Transsion mobile phones have firmly occupied the first place in the African mobile phone market share, far beyond Samsung.

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This data comes from canalys. In the table, although Samsung occupied the first position, but the third, third, and fifth brands are all under the Transsion company, and the market share adds up to 38%. Far more than Samsung.

As business conditions get better and better, like most companies, Transsion is also ready to go public. For some reason, Transsion can't go directly to the market, so it is prepared to take a backdoor approach. Now, according to Transsion’s announcement, they have failed to backdoor and should still be quite depressing.

When the spring breeze of the smartphone finally hit Africa, Transsion also made a number of innovative features in connection with the local situation. For example, the “True Backlight is also clear and illuminates your black”.

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There is also a beauty specific to black people, specifically the following effect:

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At present, Transsion owns TECNO, itel, Infinix, Spice four mobile phone brands, as well as after-sales service brand Carlcare, smart accessories brand oraimo, household appliances brand Syinix, with independent research and development center in Shanghai, Shenzhen, Beijing, the global staff more than 1 Ten thousand.

It has to be said that, in the current shipment of Transsion Holdings, the functional machine still occupies a large proportion, and the main battlefield is also limited to the African market. Although Transsion Holdings is also pushing smart phones, its smart phone shipments accounted for more than 29% of last year.

According to official data, Transsion’s shares were established in August 2013 and are principally engaged in research and development of telecommunication products. The company has established independent R&D centers in Shanghai, Shenzhen, and Beijing, and has established offices in Nigeria, Rwanda, Saudi Arabia, and France. In Africa, Transsion has more than 4,000 employees.

Currently, it has four mobile phone brands: TECNO, itel, Infinix and Spice. At the same time also has a mobile phone accessories brand Oraimo, home appliances brand Syinix, lighting brand iFLUX and after-sales service brand Carlcare. Among them, TECNO and itel were rated as the most popular brands among African consumers because of their low price and best-sellers. Infinix and Spice, on the other hand, are mainly smart machines. Although the prices are high, they bring the most revenue to Transsion.

According to IDC data, in 2017 Transsion mobile phone has sold nearly 130 million mobile phones worldwide. The market share of its branded handsets in Africa reached 45.9%, surpassing Samsung, Apple and other brands. Earlier, Wang Yang, director of research at data organization IHS Technology China, said that the mobile phones sold by Transsion Holdings accounted for a major number of functional machines, which reached 90 million units and smart machines accounted for 35 million units. This makes it the fourth largest mobile phone manufacturer in the world and the world's largest functional mobile phone manufacturer.

According to relevant media reports, the lowest price range for sound transmission handsets is only a few tens RMB, and the highest is only RMB 1,000. Therefore, the gross profit of Transsion products is not high. Transient Holdings founder Zhao Zhaojiang said that the price of the Transsion mobile phone is relatively low and the company's profit margin is lower than its competitors. Therefore, Transsion Holdings is only the 13th largest mobile phone manufacturer in terms of sales.

It is worth noting that the growth momentum of the Transsion mobile phone in the African market has been in crisis. With mobile phone manufacturers such as Huawei and Samsung increasing their development in the African market, the market share of Transsion mobile phones has gradually been eroded.

It can be said that the success of Transsion Holdings is mainly due to its dominant position in Africa and there is still much room for development.

Slowing economic growth in China has prompted local mobile phone brands to look overseas, and many companies have turned to India where they have beaten local competitors. In emerging markets such as Indonesia, shipments have also increased significantly. In particular, Xiaomi defeated Samsung in India in the fourth quarter and entered Spain, Mexico, Russia and parts of Africa.

It can be said that the global smart phone will enter a Red Sea market and the competition between brands will become more intense. It is true that there is still much room for growth in the African market for smartphones, but for Transsion this is an upswing. Therefore, Transsion Holdings wants to survive in the fierce competition in the smart machine market, it is bound to embrace capital.

Although the failure of backdoor listing was a considerable setback for Transsion, the business was so good that He could not find a suitable "shell."

Prepared by :Lucy Ye