While Transsion Holdings Faced Performance Challenges in H1 with Declines in Revenue and Net Profit, It Continued to Increase R&D Investment and Remains a Key Player in the Global Mobile Phone Market, Especially in Emerging Markets.

According to the 2025 interim report recently disclosed by Transsion Holdings, in the first half of 2025, the company achieved an operating revenue of RMB 29.077 billion, a year-on-year decrease of 15.86%; net profit attributable to owners of the parent company was RMB 1.213 billion, a year-on-year decrease of 57.48%; and non-recurring net profit was RMB 897 million, a year-on-year decrease of 63.04%. In the financial report, Transsion Holdings pointed out that the performance changes were mainly affected by the combined factors of product launch rhythm, market competition, and supply chain costs, leading to a decrease in operating revenue and gross profit.
From the Business Segment Perspective
The smartphone business remains Transsion Holdings’ main revenue source, with H1 revenue reaching RMB 24.389 billion, accounting for 85.99%; the feature phone business revenue was RMB 1.704 billion, accounting for 6.00%. The company stated that it will continue to increase investment in mid-to-high-end products and R&D resources, and strengthen the selection of value points for mid-to-high-end products.
From the Regional Revenue Perspective
Overseas sales dominate absolutely, reaching RMB 29.014 billion, accounting for 99.83%, while domestic sales were only RMB 50 million, accounting for 0.17%. Transsion Holdings positions itself as a technology brand going global, with sales regions concentrated in emerging markets around the world, such as Africa, South Asia, Southeast Asia, the Middle East, and Latin America.

Despite the performance decline, during the reporting period, the company’s total R&D investment reached RMB 1.362 billion, an increase of 15.12% year-on-year; the proportion of total R&D investment in operating revenue was 4.69%, an increase of 1.27 percentage points year-on-year. The number of R&D personnel was 4,343, an increase of 0.45 percentage points year-on-year; however, the average salary of R&D personnel was RMB 218,300, a decrease of RMB 17,600 year-on-year. As of the end of the reporting period, the company had accumulated 2,893 authorized patents, including 1,284 invention patents.

According to IDC statistics, in the first half of 2025, Transsion Holdings had a 12.5% market share in the global mobile phone market, ranking third among global mobile phone brands. Among them, its smartphone market share in the global smartphone market was 7.9%, ranking sixth. In the African market, the company ranked first in smartphone market share; in the South Asian market, it ranked first in smartphone market share in both Pakistan and Bangladesh, and eighth in India.

In addition, Transsion Holdings’ board of directors approved the H1 profit distribution plan, which intends to distribute a cash dividend of RMB 8 per 10 shares (inclusive of taxes) to all shareholders, based on the total share capital registered on the record date for equity distribution. The total proposed cash dividend is RMB 912 million (inclusive of taxes).

The global mobile phone market is highly competitive, the industry is becoming increasingly mature, and product homogenization has become increasingly prominent. However, emerging markets such as Africa, South Asia, Southeast Asia, the Middle East, and Latin America have large populations; some countries have relatively low economic development levels, and the mobile phone industry is relatively underdeveloped. The per capita mobile phone ownership and smartphone penetration rate are lower than those in mature markets, and there is still a structural upgrade demand from feature phones to smartphones. Transsion Holdings stated that based on its accumulated leading advantages in emerging markets, it will actively implement a diversified strategic layout, develop extended-category businesses such as digital accessories and home appliances, and provide mobile internet products and services.