2. Mr. Zeng, the outside world says that Transsion's development model is like Xiaomi, how do we seek differentiation from Xiaomi? Can we become a business like Apple?

Dear investors, the company is committed to becoming the most popular provider of smart terminal products and mobile Internet services for consumers in emerging markets around the world. The company adheres to the concept of "Think Globally, ct Locally", and is committed to localized product planning and technology R&D innovation in the target market. On the basis of its dominant position in the African mobile phone market, the company continues to increase its efforts and accelerate the development of mobile Internet and expand categories. Thank you for your interest!

3. Mr. Zeng, in November 24, Shenzhen actively promoted the "11 measures" to encourage mergers and acquisitions, how does your company plan to respond positively as a listed company in Shenzhen?

Dear investors, if the company has relevant plans in the future, it will fulfill its information disclosure obligations in accordance with relevant regulations. Thank you for your suggestions and interest in the company!

4. What specific measures has the company taken to improve the incentives of sales, management and R&D teams, and what is the effect?

Dear investors, Transsion provides competitive salaries and offers a diversified and differentiated incentive mechanism to attract and retain the company's core talents. TRANSSION's differentiated incentive mechanism includes short-term incentives such as sales incentives, virtual project incentives, and company-level major and outstanding contribution incentives. Medium-term incentives such as performance unit incentives, R&D value incentives, and management trainee incentives, as well as long-term incentives such as restricted stocks and medium- and long-term incentive funds. Thank you for your interest!

5. What is the strategic business plan of Transsion Holdings in the next five years, and what is the direction and progress of the company's second curve?

Dear investors, the company is committed to becoming the most popular provider of smart terminal products and mobile Internet services for consumers in emerging markets around the world. On the basis of its dominant position in the African mobile phone market, the company continues to increase its efforts and accelerate the development of mobile Internet and expand categories. The company continues its multi-brand development strategy for digital accessories and household appliances, actively implements a diversified strategic layout through the localization exploration of the ecological model of smart hardware categories, and expands new categories of smart hardware to meet the needs of consumers in emerging markets. Thank you for your interest!

6. Which markets and products will drive revenue growth in the first half of 2024?

Dear investors, the company continues to build the core competitiveness of the African market, maintain the competitive advantage of the African market, strengthen the moat through systematic capabilities, carry out digital investment, channel model innovation, retail store image upgrade, and promote localized operations. The company further explores new markets, attaches importance to the sustainable development of expanding new markets, strives to increase market share, and maintains healthy operations; Multi-brand collaboration to develop new markets, taking into account market share improvement and healthy operation goals, in-depth user insight and product adaptation, and consolidate and increase key new market shares. The company adheres to the guidance of user value, attaches importance to mid-to-high-end experience, and enhances product reputation; We will continue to increase investment in mid-to-high-end and R&D resources, continue to improve the maturity of the three-level R&D system of product development, technology R&D and basic research, enhance R&D and innovation capabilities, strengthen the selection of value points of mid-to-high-end products, form new breakthroughs in the fields of multi-skin color imaging and hardware new material application innovation, and further deepen in-depth joint development and strategic cooperation with upstream and downstream partners in the industry, universities and institutions, and strive to lead the local scene experience and improve the user experience. Thank you for your interest!

7. How to evaluate its technical competitiveness in the field of smart phones, especially in the field of dark skin tone camera technology?

Dear investors, in the field of dark skin tone photography technology, the company has the industry-leading advantages of dark skin tone database and the original dark skin tone image engine, customized and developed a number of multi-skin tone related technologies, and opened up the industry's multi-skin color image technology track. The company continues to deepen the imaging track, and has always carried out integrated technology innovation of imaging software and hardware based on changes in consumer demand and the development trend of cutting-edge technologies, from self-developed image algorithms, optical device customization to image chip customization, and constantly consolidated imaging technology capabilities to create a leading edge in the local differentiated industry. The company has developed a number of technologies such as Pre-ISP (Image Signal Processor) chip customization technology and W-type variable aperture technology. It also increases investment in the field of image IGC technology, and deeply customizes IGC portrait beauty technology based on the localization needs of emerging markets, bringing users a new I mobile phone image creation experience. Thank you for your interest!

8. What are the specific strategies for improving the product structure, and how to balance the product layout of the high-end and low-end markets?

Dear investors, Transsion owns mobile phone brands TECNO, itel and Infinix, covering different consumer groups. The company adheres to the guidance of user value, attaches importance to mid-to-high-end experience, and enhances product reputation; Continuously increase investment in mid-to-high-end and R&D resources, continue to improve the maturity of the three-level R&D system of product development, technology R&D and basic research, enhance R&D innovation capabilities, and strengthen the selection of value points of mid-to-high-end products; In the imaging field, it focuses on the development of imaging technologies such as portrait and video experience, and supports the realization of the image value of mid-to-high-end products. In the field of new hardware materials, a number of technologies have been innovated, such as folding and curling, to enhance the brand awareness of mid-to-high-end product lines. Thank you for your interest!

9. In light of the patent litigation challenges faced by the company, what are the legal and business strategies to mitigate the risks in the future?

Dear investors, Transsion respects the intellectual property rights of third parties and is willing to follow the principles of fairness, reasonableness and non-discrimination to reach an intellectual property license agreement with the patentee through friendly negotiation. TRANSSION is negotiating patents with patent owners to promote the determination of reasonable licensing fees under the framework of fairness, reasonableness and non-discrimination while respecting the intellectual property rights of others, so as to achieve a win-win situation for the entire industry chain, including patentees and licensees, and better meet the needs of consumers in emerging markets. Thank you for your interest!

10. The net profit in the first half of the year decreased month-on-month, how does the company view this trend and what measures are taken to reverse it?

Dear investors, in the first half of 2024, the net profit attributable to shareholders of listed companies increased by 35.70% year-on-year, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses increased by 36.82% year-on-year. Mainly affected by market competition, supply chain costs, off-peak seasons and other factors, the company's net profit in the first half of this year has decreased compared with the second half of last year, and we will make adjustments according to cost changes and market competition in the future to maintain a reasonable profit level. Thank you for your interest!

11. What is the impact of innovation in the field of OS system and mobile Internet products and services on the company's performance?

Dear investors, the company has formed a high-traffic application product matrix through insight into market localization needs, deep cultivation of localized services and content cooperation, and relying on the company's market share. In view of the characteristics of high traffic cost, unstable network, low bandwidth and low memory configuration in emerging markets, the company has independently developed technologies such as traffic saving, weak network connection, memory fusion, localized speech recognition in small languages, and voice noise reduction. At the same time, the company's mobile phones are equipped with a mobile phone smart terminal operating system (Transsion OS) based on the secondary development and deep customization of the ndroid system platform, which has in-depth insight into the experience of users in emerging markets in social networking, efficient office, video and audio and other scenarios, and has developed app stores, advertising distribution platforms, big data service platforms, mobile phone manager and other applications around Transsion OS. In terms of I, the company actively explores large models and interconnection technologies, and builds an architecture that enables multi-terminal convergence and interoperability, IOS system-level application reconstruction, I-side applications, and I-device cloud collaborative applications. The company released TECNO I, bringing a new generation of smart assistant Ella and innovative interactive experience, focusing on key user scenarios, using I to enhance imaging, communication, office efficiency and creativity and other scenarios, developing a series of I auxiliary function applications and continuously iteratively promoting the comprehensive I of the system to improve the mobile experience of users' smart devices. Thank you for your interest!

12. In the face of rising storage costs, what are the countermeasures to reduce cost pressure?

Dear investors, the company works hard to operate according to upstream cost changes and actively takes corresponding measures, thank you for your attention!

13. How can the company's big data user behavior analysis technology help better meet the needs of different markets?

Dear investors, the company has developed its own efficient data computing engine for mobile phones and deployed it in products, covering multiple product lines such as TECNO/Infinix/itel. Under the premise of complying with local laws and regulations and fully protecting user privacy, desensitization, calculation and analysis of basic experience feature data in multiple dimensions such as user habits, configuration preferences, mobile phone performance, battery life, heating, system/application stability, communication environment, etc., and comprehensive feedback data such as user evaluation, suggestions, and discussions, and large-scale distributed computing and storage clusters are used to analyze and measure the data for basic experience analysis and measurement modeling, timely discover problems in products and services and changes in user needs, and quickly guide design. R&D, testing, after-sales and other multi-dimensional full-chain business iterations, optimize product design and development, and continuously improve user experience and satisfaction. Thank you for your interest!

14. The company mentioned that it continues to explore emerging markets, in which specific regions or countries has it achieved significant performance growth?

Dear investors, the company's sales area is mainly concentrated in Africa, South Asia, Southeast Asia, the Middle East and Latin America and other emerging market countries around the world. According to IDC statistics, in the first half of 2024, the company's share of the global mobile phone market will be 14.4%, ranking second among global mobile phone brand manufacturers, of which smart phones will have a market share of 9.1% in the global smart phone market, ranking fourth. In the African market, the company's African smart phone market share exceeds 40%, ranking first. In the South Asian market, Pakistan ranks first in the market share of smart phones; Bangladesh ranks first in the market share of smart phones; India's smartphone market share ranks seventh. Thank you for your interest!

Transsion Holdings (688036) main business: design, R&D, production, sales and brand operation of smart terminals with mobile phones as the core.

Transsion Holdings' third quarter report for 2024 shows that the company's main revenue was 51.252 billion yuan, an increase of 19.13% year-on-year; the net profit attributable to the parent company was 3.903 billion yuan, an increase of 0.5% year-on-year; deducted non-net profit of 3.248 billion yuan, a year-on-year decrease of 7.44%; In the third quarter of 2024, the company's single-quarter main revenue was 16.693 billion yuan, a year-on-year decrease of 7.22%; the net profit attributable to the parent company in a single quarter was 1.051 billion yuan, a year-on-year decrease of 41.02%; The non-net profit deducted in a single quarter was 820 million yuan, a year-on-year decrease of 52.72%; The debt ratio was 56.22%, the investment income was 500 million yuan, the financial expenses were 57.5541 million yuan, and the gross profit margin was 21.59%.

A total of 20 institutions have rated the stock in the last 90 days, with 19 having a buy rating and 1 having an overweight rating. The average institutional price target over the last 90 days is 111.66.

Here's the detailed earnings forecast information: