**Times reporter Li Yingquan.
On the evening of February 21, Transsion Holdings (688036) released its 2023 annual performance report, and the company achieved a total operating income of 623 for the whole year9.2 billion yuan, a year-on-year increase of 339%；The net profit was 550.3 billion yuan, a year-on-year increase of 12155%；Achieved a deduction of non-net profit of 506.8 billion yuan, a year-on-year increase of 12936%；Basic earnings per share were 684 yuan.
According to the announcement, during the reporting period, the company continued to explore emerging markets, and at the same time benefited from product structure upgrading and cost optimization, the company's overall shipments increased and gross profit margin increased.
Specifically, Transsion Holdings' new market development strategy has achieved certain results in 2023, consolidating key regions, increasing market share, and increasing overall shipments and sales revenue. At the same time, through measures such as product structure upgrading and cost optimization, the company's overall gross profit margin was improved, and the corresponding gross profit increased. In addition, the company built an efficient operation organization, improved operational efficiency, supported the implementation of the company's strategy, and benefited from the growth of scale, and the expense ratio decreased year-on-year.
Transsion Holdings is a mobile phone manufacturer specializing in overseas markets, mainly selling to emerging markets such as Africa and South Africa, and is known as the "King of African Mobile Phones". Transsion Holdings owns mobile phone brands Tecno, ITEL and Infinix, digital accessories brand Oraimo, home appliance brand Syinix and after-sales service brand Carlcare.
Recently, Canalys released the global smartphone market data for the fourth quarter of 2023, and Transsion Holdings' smartphone shipments in the fourth quarter reached 28.2 million units, a year-on-year increase of 686%, jumping to the fourth place in the global smartphone market for the first time, with a market share of 9%, an increase of 3 percentage points from the fourth quarter of 2022.
According to IDC analysis, Transsion Holdings achieved strong growth in the second half of 2023 due to the rapid growth of emerging markets. According to IDC data, in the third quarter of 2023, Transsion Holdings ranked first in smartphone shipments in Africa, Pakistan, Bangladesh, and the Philippines. According to Canalys, Transsion Holdings achieved a 40% year-on-year growth in the African market in the third quarter of 2023.
Recently, Transsion Holdings said in an interview with institutional investors that the company's products and services are mainly concentrated in emerging market countries around the world, such as Africa, South Asia, Southeast Asia, the Middle East and Latin America, where the population base exceeds 4 billion, and it is still in the market development trend of "switching from feature phones to smart phones".
Transsion Holdings said that overall, the penetration rate of smartphones in emerging market countries is lower than that of North America, Western Europe and mature Asia-Pacific developed economies and China, and functional phones for smartphones are still an important factor driving the growth of the smartphone market in emerging markets. With the improvement of economic development level and per capita consumption capacity, under the general trend of intelligent development of mobile phones, the smart phone market in emerging markets has great potential.
Transsion Holdings believes that compared with other regions, the African market has unique advantages in developing mobile Internet business. First of all, Africa skips the PC era and directly enters the mobile Internet era, and the user's mind does not need to go through the iterative process from PC to smart phone, and many novel mobile Internet products and services can seize the market by leaps and bounds, and start-ups have a lot to do. Second, the average age of Africa's population is very young and in the process of urbanization. Young and urbanized users are very conducive to the formation of new consumption habits, and the market's acceptance of new things and willingness to pay are growing rapidly.
Transsion Holdings also pointed out that Africa's logistics, finance, transportation, medical and other infrastructure is backward, but the general trend of converting feature phones to smart phones has brought the possibility of improving efficiency across orders of magnitude to many industries.
Recently, "AI mobile phones" have become a hot spot in the market. Transsion Holdings also responded to this topic in a previous survey, saying that the company has a layout in the direction of artificial intelligence speech recognition and visual perception, multilingual AI voice assistant, and AI scene recognition technology. "At present, the AIGC field presents a trend of continuous enrichment of content types, continuous improvement of content quality, and increasing versatility and industrialization level of technology, and the emergence of applications such as writing assistants, AI paintings, dialogue robots, and digital humans, enriching the content needs of media, e-commerce, entertainment, film and television, and other fields. In the future, with the gradual improvement of the hardware computing power of smartphones, related AIGC applications may gradually become popular in smartphone terminals. ”