A few days ago, according to an announcement issued by the New Territories Pump Industry, the preparation of a three-month termination of a major asset restructuring related to the transmission of audio and video, which also means that the transmission plan of the A shares of the transmission of shares of A shares will be defeated. King's title, the brand's mobile phones in the African market share reached 45.9%. But industry insiders believe that the data also can not conceal the company's bottleneck in African market share growth, in order to continue to achieve growth, The tone must be 'out of Africa', but in the face of strong rivals such as Huawei, Xiaomi, and Samsung, the company will face unprecedented competitive pressure.
Backdoor failure
According to an announcement issued by the New Territories Pump Industry, the New Territories Pumps originally planned for a major asset reorganization. The proposed assets to be put into the company are not less than 51% of the shares of Transcend Holdings. The assets to be placed are related assets of the company as of December 31, 2017. And liabilities. Since the parties to the transaction could not reach an agreement on the important terms of the transaction plan, the company decided to terminate the planning of the reorganization.
This restructuring plan has been announced for three months. In March this year, the New Territories Pump Industry Corporation announced on its announcement that the company intends to acquire the controlling power of Transmit Holdings through asset replacement and the issuance of shares to purchase assets. For the New Territories Pump Industry, at that time, the relevant parties of the transaction signed the Letter of Intent for Restructuring and reached preliminary opinions on matters such as transaction methods and transaction prices.
The company is principally engaged in the design, development, production and sales of mobile communication terminal equipment. The main products are mobile communication terminal products such as mobile phones. The current sales area is mainly concentrated in the emerging emerging markets such as Africa, the Middle East, South Asia, South America and Southeast Asia. your region.
With regard to the plans for the failure of the backdoor, the Beijing Commercial Daily reporter interviewed Xie Yin Holdings. As of the press release, the other party did not give a reply.
According to industry insiders' analysis, the quality of shell resources directly affects the success of listing, and to evaluate the pros and cons of a shell resource, the industry usually chooses three important indicators: low market value, simple equity and poor performance. Look, this may be the main reason why Transmit Holdings chose the New Territories pump industry.
It is noteworthy that in 2017, Transcend Holdings also introduced a group of external shareholders. Among the newly-introduced shareholders, Hong Kong NetEase Interactive Entertainment Co., Ltd. holds a 0.98% stake in Transcend Holdings; Ziguang Group’s company and Zhao Weiguo’s shareholdings account for 70% The Ningbo Meishan Bonded Port Zone Pazhou Zhanfei Investment Center, which is funded and established by Jiankun Zhuangwu Investment Management Co., Ltd., holds 0.96% of the shares; the Nanshan Hongtai Equity Investment Fund held by the National IC Industry Investment Fund and the Shenzhen Guiding Fund Investment Co., Ltd. holds shares. Shares accounted for 0.29%. The introduction of other strategic shareholders this time may be to prepare for landing capital markets.
However, New Territories Pumps may not be the first 'shell' company selected by Transcend Holdings. Prior to this, it was reported that the company had wanted to backdoor Ningbo Bird (4.390, -0.49, -10.04%) Co., Ltd. with representatives from both sides. Negotiate, but without success.
For the reason that Transmancy Holdings seeks a backdoor listing, industry sources stated that the current market environment for the mobile phone industry has been deteriorating, and that uploading voice control has been expanding the international market in addition to Africa in recent years. This requires more financial support. From other Mobile phone manufacturers have continuously sought listing financing. Although the conditions for reviewing A shares are very harsh, backdoors are a good way for companies such as Transmitted Holdings. They are also a stupid approach. , Transmission and Control is trying to use the capital market to realize financing.
'King of Africa'
Transmission and Control Holdings is not familiar with most Chinese users and is even a little unfamiliar, but it has the title of 'king of Africa'.
According to statistics, the volume of audio handsets reached 80 million units in 2016, of which functional devices accounted for a large proportion. In 2017, the volume of mobile handsets sold exceeded 120 million units, of which smartphone shipments exceeded 35 million units. The world’s mobile phone shipments ranks fourth, global feature machines rank first, and global smart phones rank tenth. This means that acoustics has become China’s second-largest handset maker after Huawei.
In 2006, Zhai Zhaojiang, who was the person in charge of the overseas market of Bird Mobile, founded the sound transmission. Ji Zhaojiang brought the effective “border of the country to the cities” strategy in the Chinese market to Africa, starting from poor places, building channels, and advertising. 1. The market is divided by strong forerunners such as Samsung and Nokia.
After 12 years of development, Transphone has more than 4,000 local employees in Africa. It currently has four mobile phone brands: TECNO, itel, Infinix, spice (Indian market), one mobile phone accessories brand Oraimo, home appliance brand Syinix, lighting brand iFLUX And a after-sales service brand Carlcare.
The success of the transmission in the African market is due in large part to the innovation of the product that meets the actual needs of Africans, especially in photography.
The mainstream mobile phone cameras use facial recognition to take pictures. This technology is used in light-colored people without problems, but Africans generally have darker skin and use facial recognition to take pictures. The acoustic pain has been seen by users. Photographs based on the positioning of the eyes and teeth, on the basis of enhanced exposure, to help African consumers shoot more satisfactory photos, deeply loved by African users. In addition to taking pictures of pain points, the sound transmission is also based on African consumers can sing and dance The features, main music features in the new mobile phones launched in 2016, and even a custom headset.
In terms of channels, Transmitter Learning OPPO and vivo built offline stores, and at the same time did not give up the e-commerce market. It is understood that in the brand of Transmitter, TECNO positioned high-end, brand-covered smart phones, two-in-one PC , functional machines, etc., and have offline experience physical stores; itel faced the low-end market, brand promotion in Africa through specialty stores, banner ads, magazine ads and street performances; Infinix is mainly for young people's e-commerce brand , Similar to millet, Meizu, etc., mobile phone products have a sense of design and selling point, divided into ZERO, Note, HOT, HOTS series, also has its own set of Android customization system 'XOS', main security, personality and efficiency.
Low-end sleepy
But the seemingly splendid Transcend Holdings has its own 'trouble'. In Kang Wei's view, the biggest problem with Acoustic Phones is that the price is too low (sometimes only US$10) and the gross profit is even lower, despite the fact that the company last year Shipments reached 120 million units, ranking fourth in the world. However, if calculated by sales volume, the company is only the 13th largest mobile phone manufacturer and its profit is not high.
In 2017, the number of handsets shipped by Transmission and Control reached 120 million units. According to Li Chunli, chief analyst of Rising Sun Data, the revenue of the company reached approximately US$3 billion, which is approximately RMB 20 billion. Huawei’s mobile phone sales volume in 2017 was 1.53. Billion units, sales revenue was 237.2 billion yuan. Comparing the two, it can be clearly seen that Huawei's revenue is more than 11 times the revenue of the company.
'Transferred in major markets in Africa also encountered strong challenges. In the first quarter of this year, Samsung’s sales in Africa increased by 42% year-on-year, accounting for 23% of the African market. Huawei also increased its development of the African market. The crocodile is a very serious threat to transmis- sion,” said Kang Yong. For the past 12 years, the company has built up its market share in African markets by using low-cost, thin-functional machines. The smart machine has made the largest contribution to profits, but in the area of smart machines, Huawei, Samsung and other brands have been operating successfully.
Under such circumstances, it is more and more important for EV Holdings to 'get out of Africa'. There is speculation that FX Holdings intends to be listed on the Backdoor of A Shares on the one hand in order to seek financial support and on the other hand to return to the Chinese market. Paving the road, after all, the country is the world's largest purchasing power market.
In this regard, Kang Hao believes that the sound transmission should not enter the Chinese market in a short time. The company does not yet have this capability. 'China's mobile phone market is relatively concentrated and highly competitive. Huawei, Apple, Xiaomi, Vivo and OPPO have been firmly established. To control most of the market share, coupled with the saturation of the market, the popularity of sound transmission in the country is low, the company if you want to return to the domestic market is very resistant.
In addition to the domestic market, since 2015, Transmitting has been actively expanding into emerging markets outside Africa. In 2015, Transmitting entered the Indonesian market. In early 2016, Transmitting entered the Indian market formally and established a plant in India. Subsequently, Transmitting It has also entered emerging markets such as Bangladesh and Nepal. According to the data released by the company, the worldwide sales network for audio transmission is now distributed in more than 50 countries. It has more than 1,000 service outlets and 5 large-scale maintenance centers.
However, under the global smart phone market trend, global giants are increasingly expanding their efforts to emerging markets. In terms of the Indian market, Xiaomi, OPPO and other brands have achieved certain results, therefore, in other emerging markets. 4. It is very difficult for Transmission and Control Holdings to develop as unscrupulous as in Africa.
Beijing Daily News reporter Shi Feiyue