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CITIC Securities Co., Ltd.
About Shenzhen Transsion Holdings Co., Ltd.
2020 Semi-annual continuous supervision and follow-up report
CITIC Securities Co., Ltd. (hereinafter referred to as "CITIC Securities" or "sponsor") as Shenzhen Transsion Holdings Co., Ltd.
(hereinafter referred to as "Transsion Holdings" or "Company") IPO and listing on the Science and Technology Innovation Board Sponsor
institutions, in accordance with the "Administrative Measures for the Sponsorship of Securities Issuance and Listing",
Shanghai Stock Exchange Science and Technology Innovation Board Stock Listing Rules (2019 Revised in the year)",
"superior
"Shanghai Stock Exchange Listed Companies
"Guidelines for Continuous Supervision Work" and other relevant regulations, responsible for the continuous supervision of Transsion Holdings after its listing, and issue this
semi-annual follow-up report on continuous supervision.
1. Continuous supervision work
sequence
No
Work content
progress status
The sponsor has established a sound and effective implementation
1
Establish a sound and effective implementation of continuous supervision work system, and formulate
hold
Implemented a continuous supervision system and formulatedMutually
corresponding work plans for specific continuous supervision work.
Corresponding work plan.
The sponsor has signed an undertaking with TRANSSION Holdings
According to the relevant regulations of the China Securities Regulatory Commission, before the start of the continuous supervision superior
2
Sales and sponsorship agreement, which clarifies
work, a continuous supervision agreement was signed with the municipal company to clarify the interests and obligations of both
right
pair
Fang’s rights and obligations during the continuous supervision period
parties during the continuous supervision period, and report to the Shanghai Stock Exchange for the record.
Service.
2020 year 1-6 During the supervision
During the period of continuous supervision and guidance, any declaration on the development form of listed companies’ violations
3
male
period of Yue Chuan Yin Holdings, no
of laws and regulations in accordance with relevant regulations shall be reported to the Shanghai Stock Exchange before disclosure, through
Sponsor’s public statement is illegal
and the Shanghai Stock Exchange shall make an announcement on the designated media after review.
4
Continued
Violations.
During the period of continuous supervision, if the listed company or related parties violate laws,
Violate
regulations, or breach promises, they should report to the Shanghai Stock Exchange within five working
do2020 year 1-6 No violation of laws, regulations or violations
days from the discovery or within five working days from the date of discovery. The report includes the
Mutually
occurred during the supervision period of Yue Chuan Yin Holdings
Continued
Save
Back promises and other matters.
listed company or related parties’ violations The specific circumstances of violations, violations of promises,
etc., supervision measures taken by the sponsor, etc.
Sponsor institutions communicate regularly and regularly
5
open
Learn about TRANSSION through irregular return visits, etc.
Perform continuous supervision work through daily communication, regular return visits, on-site
inspections, due diligence, etc.
Share operations, the development of TRANSSION Holdings
Continue to supervise the work.
1
or
control
hold
2020 year 1-6 Month, the sponsor supervised and passed
Yin Holdings and its directors, supervisors and senior management
Supervise listed companies and their directors, supervisors and senior managers in compliance with laws,
Management personnel abide by laws, regulations, and departmental regulations
6 Regulations, departmental rules and business rules issued by the Shanghai Stock Exchange and others
Zhang and the industry issued by the Shanghai Stock Exchange
Normative documents, and earnestly fulfill all commitments made by them.
Business rules and other normative documents, earnestly
Fulfill all the commitments it has made.
Supervise listed companies to establish, improve and effectively implement the corporate governance system, including but not
7
but
The sponsor urges Transsion Holdings to follow the relevant
,
limited to the rules of procedures for the general meeting of shareholders, the board of directors, and the board of supervisors, as Supervise
Relevant regulations, perfect and perfect corporate governance system
And strictly implement the corporate governance system.
well as the code of conduct for directors, officers, and senior management.
Sponsor’s internal control of Transsion Holdings
Supervise listed companies to establish a sound and effective implementation of internal control systems, limit
8
Design, implementation and effectiveness of
and
including but not limited to financial management systems, accounting systems, and internal audit systems,
NS
Verification, the internal control system of Transsion Holdings combine
for the use of raised funds, related transactions, external guarantees, external investments, derivative
transactions, control of subsidiaries, etc. Major business decision-making procedures and rules, etc.
Taste
.
Relevant regulations require and have been effectively enforced
.
OK, can guarantee the company’s standard operation
Supervise listed companies to establish a sound and effective implementation of the information disclosure system, review
letter
information disclosure documents and other related documents, and have sufficient reasons to be convinced that the documents
manage
submitted by the listed company to the Shanghai Stock Exchange do not contain false records, misleading statements or major
List
The sponsor urged Transsion Holdings to strictly implement
9
Information disclosure system, review information disclosure
dew
Documents and other related documents.
omissions.
Securities Regulatory Commission and Shanghai Securities Exchange in advance, and promptly urge the company to
pay
Phi
correct or supplement the information disclosure documents that have problems. If the company does not make
repair
corrections or supplements, it shall be timely Report to the Shanghai Stock Exchange; if the listed company’s letter
interest
shall promptly report to the Shanghai Stock Exchange.
Report
Review the information disclosure documents of listed companies and other documents submitted to the China
Sponsor’s Information Disclosure of Transsion Holdings
The document has been reviewed and there is no application and
10disclosure documents have not been reviewed in advance, the review of the relevant documents shall be completed dew
The situation reported to the Shanghai Stock Exchange
within five trading days after the listed company fulfills the information disclosure obligations, and the information live
condition.
disclosure documents in question shall be reviewed. If the listed company does not make corrections or supplements, it,
Pay attention to the situation of listed companies or their controlling shareholders, actual controllers, directors, and
senior executives of supervisors being subject to administrative penalties by the China Securities Regulatory
11
Commission, disciplinary sanctions by the Shanghai Stock Exchange, or the Shanghai Stock Exchange issuing a
,
The company or its controlling shareholder, actual control
Persons, directors, supervisors, senior managers
member
Place
,
There are no regulatory measures taken by the regulatory agency
The implementation of the situation.
regulatory concern letter, and urge them to improve their internal control systems, Take measures to correct it.
Continue to pay attention to the performance of commitments by listed companies, controlling shareholders, actual
12controllers, etc., and report to the Shanghai Stock Exchange in a timely manner if the listed companies, controlling
of 2020 year 1-6 In September, Transsion Holdings, its
shareholders, and actual controllers did not exist shoe
control
thing
Under the commitments.
shareholders, actual controllers, etc. fail to fulfill their commitments.
Pay attention to public media reports on listed companies, and conduct timely checks on market rumors.
Enter
Big
13inconsistent with the disclosed information and the facts, promptly urge the listed company to disclose or like
clarify; if the listed company does not disclose or clarify, it should report to the Shanghai Stock Exchange Time
The situation reported by the Shanghai Stock Exchange.
After verification, it is found that the listed company has important matters that should be disclosed or is
report.
2
2020 year 1-6 According to the investigation by the sponsor,
nuclear
TRANSSION Holdings does not exist and should promptly report to
superior
If one of the following situations is discovered, the listed company shall be urged to make an explanation and make corrections within a time limit, and report to the Shanghai Stock Exchange
at the same time: (1) Suspected violation of the "Listing Rules" and other relevant business rules; (2) Issued by securities service agencies and their signature personnel Professional opinions
may contain false records, misleading statements or material2020 year 1-6 Months, after the sponsor’s verification of omissions and other violations of laws and regulations or other improper
circumstances;
14
(3) "Guarantee inspections occurred in the company, and there was no relevant situation in Transsion Holdings."
The circumstances stipulated in Article 71 and Article 72 of the Recommendation Measures; (4) The company
does not cooperate with the continuous supervision work; (5) Other circumstances that the Shanghai Stock
Exchange or the sponsor considers to be reported.
Formulate an on-site inspection work plan for listed companies, clarify the requirements for on-site
inspection workers, and ensure the quality of on-site inspection work. In the case of one of the following
situations in a listed company, the sponsor and the representative of the sponsor shall know it or should
know it as of the date15 Special on-site inspections are carried out within days: (1) There is a suspicion of
15major financial fraud; (2) The controlling shareholder, actual controller, director, supervisor or senior
manager is suspected of infringing on the interests of the listed company; (3) There may be a major
violation guarantee; (4) Significant abnormalities in capital flows or cash flows (5) Other matters that the
Shanghai Stock Exchange or the sponsoring institution believes should be inspected on site.
do
Of
OfThe sponsor has formulated an on-site inspection
make
Relevant work plan, and clarified the site
ByCheck job requirements.2020 year 1-6 In September,pass
Check
Heavythere
is no need for special on-site inspection
；Check the situation.
nuclear
2. Problems discovered by the sponsor and sponsor representatives and their rectification
During this continuous supervision period, the sponsor and the sponsor representative did not find any major problems with Transsion Holdings.
3. Major risks
(1) Core competitiveness risk
1, The risk that technological innovation cannot meet market demand
With the rapid development of Internet technology and mobile communication technology, mobile phones have been transformed from simple mobile
communication tools to integrated consumer electronics products that integrate communication, commerce and entertainment. In general, the technology
update cycle of the mobile phone industry is continuously shortening, which puts forward higher requirements for the R&D strength and market response speed
of enterprises in the industry. The application of a new technology or the release of a new product may set off a new consumer trend and have a very significant
impact on the market competition pattern of mobile phone products. If the company cannot continue to invest in R&D resources, continuously update
technology, and respond quickly to the market in the future in new material research, technological innovation, and process innovation, it will lead to a decline in
the company’s product sales. Therefore, the company’s operating performance cannot be technologically innovative. The risk of meeting market demand.
2, The risk of core personnel loss
The company’s industry is a capital- and technology-intensive industry, with experienced managers and technology researchers
3
Talent development is an important foundation for the company's survival and development. As market competition intensifies, the competition for
talents among companies will become more intense. If the company cannot provide core personnel with a competitive salary and incentive
mechanism in the future, the company may face the risk of core personnel loss.
3, Technology upgrade iteration risk
The company's continuous R&D investment is the guarantee of the company's technological advancement. However, with the continuous upgrade and iteration of
technologies in the fields of mobile communications, hardware manufacturing, and information services, if the company’s competitors complete the development and application
of new technologies earlier than the company, or other major technological breakthroughs occur in the industry, the company’s core technologies will face unsustainable The risk
of maintaining a leading position in the industry or even being replaced by other technologies will have an impact on the company's development.
(2) Operational risks
1, Overseas business risks
During the reporting period, the company’s mobile phone products were all exported overseas, achieving a high market share in markets
such as Africa and South Asia, and had established factories in emerging market countries such as Ethiopia, India, and Bangladesh. 2,000 There are
two after-sales service outlets (including third-party cooperation outlets), and a global layout with cross-border operations in Africa, South Asia,
Southeast Asia, the Middle East and South America has been established.
Although the economic development of emerging market countries is faster, their economic foundation is relatively weak compared with developed
countries or mature markets, and there is a certain degree of uncertainty in the political and economic environments. In addition, if the political and diplomatic
relations between China and the United States, China and India become tense or deteriorate, it may trigger vicious trade events such as trade wars, market
access, and import and export restrictions, which will be detrimental to the company’s overseas procurement, production and sales. Influence.
In addition, the new crown virus epidemic has currently adversely affected the economic operations of many countries and regions around
the world. If the epidemic further spreads globally, the company's overseas operations will be affected to a certain extent, which may adversely affect
the annual results.
2, Concentration of supply of major raw materials and risk of price fluctuations
The main raw materials purchased by the company mainly include electronic components, optical devices, structural materials, electronic accessories
and packaging materials, among which key components represented by chips, screens and memories account for a relatively high proportion of operating costs.
At present, the upstream key component industry of mobile phones has formed an oligopolistic competition pattern, such as
4
If the company’s key component suppliers experience major operating changes or major adverse changes in the foreign trade
environment, it will lead to insufficient supply of relevant raw materials or substantial price fluctuations, and may have a greater impact
on the company’s profitability.
3, Quality control risk
The mobile phone industry's process and technology upgrades continue to accelerate, and consumers' requirements for the quality of
mobile phones are also increasing. The company always attaches great importance to product quality and has established a complete quality
control system to ensure product quality. The company has passedISO9001(Quality Management System),ISO14001(Environmental Management
System) andOHSAS18001(Occupational Health and Safety Management System) and other international authoritative system standards. During the
reporting period, there were no major quality accidents and no major product quality disputes.
With the continuous expansion of business scale, the continuous increase of product categories, and the continuous improvement of product
innovation capabilities, the company's product quality control standards will be further improved, and the difficulty of quality control will further
increase. If the company's quality control system cannot be continuously improved along with the rapid development of the business or the quality
control system cannot be effectively implemented, it may lead to product quality problems, which may bring operating risks to the company.
4, Management risk caused by scale expansion
During the reporting period, with the growth of the scale of operations and the expansion of the company's production and sales scale, higher
requirements were placed on the company's organizational structure, management system, and management personnel. In the future, if the company is unable to
innovate in management methods in time to meet the needs of its scale expansion, there may be risks such as weakened competitiveness and rising operating
costs.
5, Overseas subsidiaries control risks
The company has a number of sales entities overseas, and the main sales areas cover Africa, South Asia, Southeast Asia, the Middle East and South
America, etc. 70 Many countries and regions. For mobile phone products, the overall political situation of the relevant countries is stable and there are usually no
restrictive regulatory policies or prohibitive regulations. However, due to the political environment, social environment, economic development level, fiscal,
taxation, and trade policies of each emerging market country or region, there are certain differences. Different countries or regions have different regulations or
requirements on product import tariffs, product certification, and local investment ratios. Companies conducting business overseas and establishing institutions
need to abide by the laws and regulations of the country and region where they are located. If there are major changes in the laws and regulations, industrial
policies, or political and economic environment of the countries and regions where overseas business is located, or due to unforeseen factors such as international
tensions, wars, trade sanctions, or other force majeure, the company cannot
5
Adapting to the regulatory environment of many countries and regions, establishing an effective overseas subsidiary management and control system, or insufficient
international management capabilities, will have an adverse impact on the company's production and operation.
(3) Industry risks
The mobile phone market is a fully competitive market. Mature markets represented by Europe and the United States started early and have experienced
a stage of rapid development. Internationally renowned brand manufacturers have a dominant position in the global mobile phone market. However, in recent
years, the overall strength of domestic mobile phone manufacturers has increased significantly and their market share has increased rapidly. With economic
development, population growth, and continuous improvement of communication infrastructure, major emerging markets such as Africa, South Asia, Southeast
Asia, the Middle East, and South America are the main sources of future growth in global mobile phone sales. At present, the penetration rate of smart phones in
emerging markets is relatively low, and it is still in the transition stage from feature phones to smart phones. Feature phones still occupy a relatively high market
share. Due to the huge mobile phone market space and growth potential in emerging markets, more and more mobile phone manufacturers enter the emerging
markets, resulting in increasingly intensified competition in the emerging markets.
(4) Macro-environmental risks
The global market capacity of the mobile phone industry is huge, and emerging market demand is an important driving force for the future growth of
the industry. As a consumer electronic product, the mobile phone industry has no obvious periodicity, but similar to other consumer electronic products, as the
macroeconomic boom declines, consumer market demand will decline accordingly. The progress of replacing feature phones with smartphones in emerging
markets will also be affected, thereby affecting the overall sales of mobile phone products. Therefore, if the global economy fluctuates sharply in the future, it will
have an adverse impact on the development of the smart terminal equipment industry in which the company is located.
(5) Other major risks
1, Unfavorable risks of new market expansion
Although the company has accumulated rich market development experience and technology accumulation in the major emerging markets
represented by Africa, due to the social and cultural differences between the emerging market countries, the degree of economic development,
industry regulatory policies and consumer preferences, etc. There are big differences, and the channel construction of new markets, brand
promotion and consumer recognition require a certain period of time. Product production and logistics organization also require continuous capital
and manpower investment. Therefore, if the expansion of new markets continues to increase, the high initial investment in new markets will likely
reduce the company's current profitability; at the same time, if the expansion of new markets fails to meet the expected goals, it will have an adverse
impact on the company's performance growth . In addition, mobile Internet services, as the industry’s development trend and an important profit
growth point, have broad prospects for future development. If the company fails to maintain its presence in emerging markets such as Africa,
6
The development of the mobile Internet field will have an adverse impact on the company’s operating performance growth.
2,Financial risk
(1) Risk of falling inventory prices
During the reporting period, the company's business scale grew rapidly, and the inventory balance also increased. The product life cycle of the consumer
electronics industry where the company is located is usually short. If the company cannot effectively implement inventory management in the future, resulting in a
backlog or damage of raw materials, or a sharp drop in the price of raw materials and inventory due to changes in the product market environment, the company
will face a decline in inventory prices. risk.
(2) Exchange rate fluctuation risk
During the reporting period, the company's mobile phone products were all sold overseas, and the sales areas were mainly concentrated in global
emerging market countries such as Africa, South Asia, Southeast Asia, the Middle East and South America. The company's overseas sales were mainly settled in
foreign currencies such as U.S. dollars. Sexual assets and liabilities. Therefore, during the reporting period, due to the continuous fluctuations in the exchange rate
between the US dollar and other foreign currencies against RMB, although the company will balance the scale of foreign currency monetary assets and liabilities in
the future to reduce the impact of exchange gains and losses on operating performance, if the settlement exchange rate of the relevant foreign currency against
RMB is short-term Large fluctuations will still have a greater impact on the company's operating results.
(3) Risk of decreased profitability
Since its establishment, the company has always insisted on deepening the global emerging markets represented by Africa and insisting on product localization
innovation. After years of accumulation and development, the company has established a leading market advantage and high brand awareness. If the future competition in
emerging markets intensifies and the overall industry gross profit margin decreases, and the company cannot continue to maintain product innovation and improve product
quality and service levels, so as to continue to maintain its market-leading competitive advantage in the fierce industry competition environment, the company will also face a
decline in market position. The risk of a decline in the level of gross profit margin, which in turn leads to the risk of a decline in the company's overall profitability.
(4) The risk of changes in tax incentives
1) Income tax
During the reporting period, some of the company’s subsidiaries enjoyed corporate income tax incentives, including tax incentives for high-tech
enterprises, tax incentives for enterprises related to the Western Development Strategy, and tax incentives for software companies. Among them, the holding
subsidiaries Shenzhen Taihenuo and Shanghai Chuanying , Shenzhen Transsion Communication, Shanghai Zhanyang, etc. are recognized as high-tech
7
Technical enterprises, enjoy the reduction of corporate income tax 15%Tax incentives calculated and paid at the tax rate; the holding subsidiaries Chongqing
TRANSSION Technology and Chongqing Xiaochuan have been identified as encouraged industrial enterprises in the western region, and enjoy the corporate
income tax reduction 15%Shanghai Chuanying and Shanghai Zhanyang, Shenzhen Transsion Communications, and Chongqing Transsion Communications are
recognized as software companies and enjoy the “two exemptions and three halves” tax incentives for software companies. If the company and its subsidiaries no
longer meet the qualification requirements for relevant tax incentives after the expiration of the above-mentioned preferential tax policies, or if there is an adverse
change in the relevant national and local income tax preferential policies, it will have a certain adverse impact on the company's future operating results.
2)VAT
During the reporting period, some of the company’s subsidiaries enjoyed value-added tax preferential treatments, mainly including export tax rebates
for production enterprises and immediate refund of value-added tax on software products. Among them, the holding subsidiary Shenzhen Taihengnuo and
other enterprises enjoy value-added tax exemption for export goods. , Credit and refund” policy; Shanghai Chuanying, a holding subsidiary, sells software
products developed and produced by it, and the actual value-added tax on it exceeds 3%The part of the implementation of the policy of reimbursement and
withdrawal. If the national export tax rebate policy or software product value-added tax refund policy changes in the future, it will have an adverse impact on the
company's profit level.
3, Communication patent license risk
Mobile communication terminal equipment represented by mobile phones is the carrier connected to the communication network. In order to access the
communication network and realize global communication, various performance parameters must follow the mobile communication protocol standards. The mobile
communication protocol standard is formulated through the cooperation of communication standard-making organizations and major communication industry enterprises, and
is widely accepted worldwide. With their long-term technical accumulation in the communications industry, major communications manufacturers around the world have
gradually formed a large number of communications patents, and have incorporated their own patented technologies into the communications protocol standards when
participating in the formulation of the current major communications protocol standards. Formed the standard essential patents in the communication field implemented by
mobile terminals (SEP).
Due to the rapid development of communication technology, the standard-essential patents included in the mobile communication protocol standards
continue to change, and the main standard-essential patents focus on underlying technologies such as baseband chips. Most mobile phone manufacturers,
including companies, cannot grasp and judge in real time. Therefore, there is the possibility of using third-party standard-essential patents. Therefore, the
company's mobile phone products have the possibility of paying license fees for implementing third-party standard-essential patents. The licensing of standard
essential patents shall be fair, reasonable and non-discriminatory (FRAND) Principle, the company actively negotiates and negotiates with third-party patentees
regarding the licensing of standard-essential patents in the mobile communications field. but
8
Due to the uncertainty of the licensing of standard essential patents, the possibility of a company being sued by a third-party
patentee does not rule out the possibility that the increase in costs cannot be eliminated by raising product prices.
4. Major violations
2020 year 1-6 In September, the company had no major violations.
5. Reasons and rationality of changes in main financial indicators
2020 year 1-6 In the month, the company’s main financial data and indicators are as follows:
unit: yuan
Main accounting data
Operating income
Net profit attributable to shareholders of listed companies
Run
Deductions attributable to shareholders of listed companies
Net profit from non-recurring gains and losses
Net cash flow from operating activities
This reporting period (1-6moon
)
This reporting period is the same as last year
last year
Period increase and decrease (%)
13,845,655,195.09
10,504,168,777.97
31.81
1,091,270,279.13
817,899,940.82
33.42
939,216,364.59
689,874,288.00
36.14
-457,767,327.89
842,048,452.89
-154.36
Forehead
At the end of the reporting period
At the end of the reporting period compared with the previous year
End of last year
End-of-degree increase and decrease (%)
Net assets attributable to shareholders of listed companies
8,836,923,003.56
8,253,990,126.23
7.06
19,122,160,942.62
17,743,753,414.33
7.77
Produce
Total assets
This reporting period
Main financial indicators
This reporting period is the same as last year
last year
(1-6moon)
Period increase and decrease (%)
Basic earnings per share (yuan/share)
1.36
1.14
19.30
Diluted earnings per share (yuan/share)
1.36
1.14
19.30
1.17
0.96
21.88
After deducting non-recurring gains and losses, the basic
Earnings per share (yuan/share)
Weighted average return on equity (%
)
Weighted after deducting non-recurring gains and losses
Average return on equity (%)
R&D investment as a percentage of operating income
(%)
12.50
19.53
Reduce7.03Percentage point
10.76
16.48
Reduce5.72Percentage point
3.07
3.32
Reduce0.25Percentage point
1,2020 In the first half of the year, the company's operating income increased year-on-year 31.81%, The net profit attributable to shareholders of listed companies
increased year-on-year 33.42%, The overall operation is good. The main reason is: the company has been orderly and effective to promote the resumption of work and
production during the epidemic prevention and control period, and the African market has maintained stable growth; at the same time, the company has continued to increase
the development of new markets and brand promotion efforts, and sales revenue in new markets has increased year-on-year .
9
2,2020 In the first half of the year, the net cash flow from operating activities decreased year-on-year 154.36%, Due to the increase in
payment from suppliers in the current period, the main reasons are: ➀In order to deal with the impact of the epidemic, the company paid in advance
and purchased key components for strategic stocking; ➁In order to meet the demand for sales growth in overseas markets, the overall inventory was
stocked. The volume also increased year-on-year.
3,2020 In the first half of the year, the weighted average return on net assets and the weighted average return on net assets after deducting non-
recurring gains and losses decreased year-on-year, mainly due to the company's larger increase in net assets over the same period of the previous year.
6. Changes in core competitiveness
(1) Brand advantage
For the mobile phone industry, a brand is a manifestation of comprehensive strength. The establishment of a brand requires long-term and unremitting
efforts of enterprises in technology research and development, product performance, sales network, professional services, corporate culture, etc. It is an
important barrier to the mobile phone industry. For new entrants, it not only takes a long time to establish a company's brand, but the cost is several times that
of the original company to maintain and consolidate the brand. The company has been rooted in the African market for many years. With its excellent product
performance and localized technological innovation, it has gained a higher market share than other mobile phone manufacturers and a wide range of brand
influence in the African market. It is known as the "King of Africa" in the industry. .
The company has established a multi-level brand and product sequence that can meet the needs of different classes of consumers for
different subdivided consumer groups, and has accumulated a large and loyal user base. The multi-brand strategy covers different consumer groups
in Africa and forms a strong barrier to competition for a single brand entering Africa. The company was foundedTECNO,itel,Infinix The three major
mobile phone brands, and the creation of a digital accessory brand at the same time Oraimo, After-sales service brand Carlcare And home appliance
brands Syinix Etc. and independently developed HiOS,itelOS with XOS And other intelligent terminal operating systems and independent application
software platforms. Based on Africa's localized innovation and product positioning focusing on user experience, the company's brand has high user
loyalty, which is the company's unique competitive advantage.
With the help of the company's advantages in the field of mobile phone products, the company's mobile Internet business and mobile phone peripheral
products such as home appliances and accessories have a high-quality brand guarantee. Through word-of-mouth marketing and good interaction among users,
the company's business ecological model of "mobile phones + mobile Internet services + home appliances, digital accessories" has taken shape, which has
further strengthened the company's competitive advantages.
(2) Advantages of localized operation
Since its establishment, the company has focused on cultivating the global emerging mobile phone market such as Africa, and upholds the "Think
10
Globally,Act Locally"
(Global vision, localized execution) concept, committed to the target market
Field localized product planning and technological R&D innovation. The company keeps track of consumer market demand trends in a timely manner, and conducts
in-depth research on customer needs, so that its product R&D direction is accurately positioned, and its products can meet market demand in a timely manner and
seize market opportunities. With excellent product performance and localized technological innovation, the company has improved the terminal experience of
mobile phone users. The company has gained a higher market share than other mobile phone manufacturers and extensive brand influence in the African market.
In addition, in terms of talent introduction and training, the company has attached great importance to the construction of a localized talent team since
its establishment, and has absorbed and cultivated local talents for a long time. The company's production, R&D, procurement, and sales teams all include
foreign and local employees, and they play an important role in the company's production and operation.
(3) R & D advantages
The company is the first domestic mobile phone manufacturer to enter Africa. It has many years of technology precipitation, and has a deep insight and
understanding of the African market and user groups. The leading market share of the African market has brought the company natural, continuous and stable
data and traffic. Leading the upgrade direction of local mobile phone design and craftsmanship. After years of continuous accumulation, the company has strong
applied technological innovation capabilities. The company actively introduces new materials, new processes and new technologies and applies them to mobile
phone products to achieve continuous innovation in applied technology. Taking the African market as an example, in response to the market needs of African
consumers, the company has achieved research and development results that are highly compatible with the local market, and developed personalized application
technologies such as dark skin color camera technology, night photograph capture technology, and face recognition unlocking function in dark places; In response
to frequent power outages in some areas of African countries, large temperature differences between morning and evening, and excessive sweat on the hands of
users, the company has also developed low-cost and high-voltage fast charging technology, ultra-long standby, current control technology and anti-sweat fluid for
ambient temperature detection.USB Ports, etc.; for the entertainment of African consumers, we have developed a bass design and speaker design suitable for
African music, and a radio function design suitable for Africans. We have developed music, games, short videos, content aggregation and other fields that fit
African users’ preferences. Mobile Internet applications.
The company has established independent R&D centers in Shanghai, Shenzhen and Chongqing. As of the end of the reporting period, the
company has R&D personnel1,602 people. The company has developed a number of technologies such as facial feature point detection and
automatic scene recognition in the areas of photography, dark-skinned face recognition, and localized scenes, and has carried out multiple product
and function iterations based on user habits and preferences. Based on the rich mobile phone data, the company has established user portraits,
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A series of data analysis and strategy systems such as cloud storage and user activity model, based on user experience big data and
cloud computing, use deep learning to predict user behavior as the core, and adapt different resource allocation strategies for users
with different usage habits.
The company regards technological innovation as one of the company's core strategies, and has always maintained a relatively high amount of investment in
technological research and development since its establishment. In the future, the company will continue to strengthen its research and development capabilities and continue to improve its level of technological inno
(4) Channel advantage
The company's sales model focuses on distribution, and has gradually established and improved a set of marketing channel networks with wide
coverage, strong penetration and high stability. The first-mover advantage of sales channels has laid a solid foundation for consolidating and increasing the
market share of emerging markets in Africa, South Asia, Southeast Asia, the Middle East and South America. The company's products have entered the world70
Many countries and regions, and each market country more than 2,000 Distributors and customers with rich sales experience have established close cooperative
relations and have formed a sales network covering major emerging markets in the world such as Africa, South Asia, Southeast Asia, the Middle East and South
America. While establishing a wide range of primary distribution channels, we are committed to strengthening cooperation with primary dealers, downstream
distributors and even terminal retail channels. For customers in key markets and key distributors, the company adheres to the strategy of channel sinking, and has
sales specialists to maintain long-term and stable daily communication with dealers, distributors and retailers, so as to obtain first-hand market feedback and
demand information in a timely manner, and grow together with distributors . Makes product competitiveness and market share continuously improved.
(5) Advantages of supply chain management
Relying on its scale and brand advantages, the company has established a stable and friendly cooperative relationship with suppliers in the
procurement process. Through the implementation of a supplier evaluation system and a strict procurement approval system, the procurement cost of raw
materials is reduced while ensuring the quality and delivery of raw materials. Expect. As a mobile phone brand, the company actively promotes domestic mobile
phone component suppliers to go overseas to build factories, further enhancing the timeliness and stability of procurement. The company's product sales cover
the world70 There are differences in demand for mobile phone products in many countries and regions.
In order to meet the differentiated market needs of consumers in different countries, the company has built a diversified flexible production line with a
multi-variety and multi-batch manufacturing capacity. In addition, the company has set up factories in Ethiopia, India, Bangladesh and other places. On the one
hand, it can quickly respond to market demand, and on the other hand, it has also promoted the construction of local employment and production supporting
facilities. The company's rapid market response and flexible production capabilities have enabled the company to gain a good reputation and reputation in the
market, and further build barriers to market entry. The company attaches great importance to the logistics network
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Construction, after years of accumulation, has formed a logistics distribution system in which sales market linkages, central logistics and regional
logistics complement each other. The company has set up logistics warehouses in Dubai, Ethiopia, India, Bangladesh and other overseas countries
or regions, and comprehensively uses air, sea and other transportation methods to achieve rapid delivery of products and raw materials in Africa,
Southeast Asia, South Asia and other regions.
(6) Advantages of integrated after-sales service
The company has a professional after-sales service brand Carlcare, The service category has covered mobile phone products and
household appliances products of its own brand, and has gradually expanded to non-private brands and other categories.Carlcare Committed to
providing localized one-stop service for the global market, it has established more than 2,000 Service outlets (including third-party cooperation
outlets).Carlcare It has a management team and technical team composed of a number of industry experts, covering Africa, South Asia, the Middle
East, Southeast Asia, the Middle East and South America and other regions, providing professional and efficient after-sales service to users around
the world. The professional after-sales service system provides a strong guarantee for the company to consolidate and increase its sales share in
emerging markets, and further enhance product stickiness with end users.
(7) Management advantage
The company has gathered a high-quality management team with rich industry experience, unity and enterprising, and formed a stable and efficient core
management structure. The company's core management personnel have extensive experience in the mobile phone industry, and have a deep understanding of the
development of the mobile phone industry and the operation and operation of enterprises in the industry.
Since its establishment, the company has focused on overseas operations and operations, and the core management team has extensive overseas management
experience. The company's management team has been deeply involved in Africa for many years and has a deep understanding of emerging markets such as Africa and India.
The company's management team has always actively participated in the operation and management of overseas business, by combing and improving the overseas
management process, implementing a localized management model, and continuously improving the comprehensive capabilities of operations.
In summary,2020 year 1-6 There was no adverse change in the company’s core competitiveness in the month.
7. Changes in R&D expenditures and R&D progress
(1) Research and development expenditure
unit: yuan
424,375,553.08
Expendable R&D investment in this period
/
Capitalized R&D investment in this period
424,375,553.08
Total R&D investment
13
3.07
Proportion of total R&D investment in operating income (%)
/
Proportion of capitalization of R&D investment (%)
(2) Research and development progress
2020 year 1-6 In the month, the company’s research projects include cloud data warehouse technology development, artificial intelligence and computer vision
perception technology projects, and dark skin photography algorithm technology projects based on neural network optimization, etc. 34 The project is progressing smoothly.
(3) Research and development results during the reporting period
2020 year 1-6 Month, the company added a new authorized patent 90 Pieces of which invention patents 26 Files; new software copyright 6
Pieces. As of the end of the reporting period, a total of authorized patents have been obtained769 Pieces of which invention patents 149 Files;
accumulated software copyright 439 Pieces.
8. Whether the new business progress is consistent with the previous information disclosure (if any)
not applicable.
Nine, the use of raised funds and compliance
2020 year 1-6 The actual use of raised funds by the company 38,359.84 Ten thousand yuan,2020 year 1-6 The net amount of interest received on bank
deposits and income from wealth management products deducted from bank handling fees per month is 2,816.02 Ten thousand yuan; accumulated funds raised
have been used 67,267.99 Ten thousand yuan, the net amount of accumulated interest on bank deposits and income from wealth management products
deducted from bank handling fees is 3,772.96 Ten thousand yuan.
As of 2020 year 6 moon 30 On the day, the balance of raised funds is 203,970.58 Ten thousand yuan, of which bank deposits deposited in a
special account for fund-raising 72,970.58 Ten thousand yuan (including the net amount of accumulated bank deposit interest, income from wealth
management products deducting bank handling fees, etc.), and the amount of unexpired bank wealth management products purchased with idle
raised funds is 131,000.00 Ten thousand yuan.
As of 2020 year 6 moon 30 day,The company and its wholly-owned subsidiaries have 11 Special fund-raising account, The
deposit of raised funds is as follows:
currency: RMB
Bank account
China CITIC Bank Co., Ltd. Shenzhen City Broad
Bank Account
8110301013300476524
Balance of raised funds
25,545,065.57
Field Flagship Sub-branch
China CITIC Bank Co., Ltd. Shenzhen Funan Branch
Remark
Fund raising
Special account
8110301013100476610
14
74,772,668.58
Fund raising
Row
China Construction Bank Co., Ltd. Shenzhen
Special account
44250100003400003910
36,939,681.41
Branch Sales Department
China Construction Bank Corporation Shanghai Zhang
Special account
31050161393600003986
100,770,678.43
Jiang Sub-branch
631436380
Kou Branch
762772751873
Branch
Industrial Bank Co., Ltd. Shenzhen Heping Branch
Row
Shanghai Pudong Development Bank Co., Ltd. Shenzhen
101,472,770.77
8,250,253.30
Fund raising
Special account
755930761310909
112,474,585.48
Fund raising
Special account
338070100100275618
4,174,761.34
Fund raising
Special account
79320078801300000880
12,426,855.95
Shenzhen Keyuan Sub-branch
Standard Chartered Bank (China) Limited Shenzhen Branch
Fund raising
Special account
Bank of China Limited Shenzhen High-tech Zone
Branch
Fund raising
Special account
China Minsheng Banking Corporation Shenzhen Snake
China Merchants Bank Co., Ltd. Shenzhen Overseas Chinese Town
Fund raising
Fund raising
Special account
000000501511366720
100,965,721.05
Fund raising
Special account
Citibank (China) Co., Ltd. Shenzhen Branch
1791116801
151,912,741.36
Fund raising
Special account
total
729,705,783.24
In addition, as of 2020 year 6 moon 30 On the day, the amount of unexpired bank wealth management products purchased by the
company with idle raised funds was 131,000.00 Ten thousand yuan.
company 2020 year 1-6 The deposit and use of monthly raised funds comply with the "Shanghai Stock Exchange Science and Technology Innovation
Board Stock Listing Rules",
"Measures for the Administration of Funds Raised by Listed Companies on the Shanghai Stock Exchange (2013 Annual
revision)", "Shenzhen Transsion Holdings Co., Ltd.’s Fund-raising Management Measures" and other laws, regulations and system documents, the
funds raised were stored in a special account and used for special purposes, and relevant information disclosure obligations were fulfilled in a timely
manner. Disguised changes in the use of raised funds and damage to the interests of shareholders, there is no situation of illegal use of raised funds.
10. Shareholding, pledge, freezing and reduction of holdings of controlling shareholders, actual controllers, directors, supervisors and
senior executives
not applicable.
11. Other matters that the Exchange or the sponsors think should be expressed
As of the date of issuance of this continuous supervision and follow-up report, there are no other matters that the sponsor believes should
be expressed.
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(No text below)
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