Phone maker Transsion confident in ability to compete ahead of planned IPO
Date:2019-05-08 17:20:00 Posted by:Ada View:266
Transsion Holdings, a Chinese phone producer that leads in the African market, has expressed confidence in its competition with Huawei and Xiaomi in its detailed response to the Shanghai Stock Exchange (SSE) on Monday. The company is seeking to list on the exchange's science and technology innovation board.
Rivals including Huawei and Xiaomi will not affect Transsion's performance in the African and Indian markets. Transsion will maintain a high market share and brand influence in those markets, according to the response of the company, which is based in Shenzhen, South China's Guangdong Province.
Transsion has build a solid competitiveness that depends on its localized product line, stable sales channels, and data resources, read the response.
The paper was posted on SSE's official site on Monday along with those of 12 other companies.
In Transsion's document, it elaborated on its core technology, business focus, potential risks and its management and operations, responding to 62 questions from the SSE to judge whether the company is qualified for the new board.
Li Daxiao, chief economist at Shenzhen-based Yingda Securities, told the Global Times on Tuesday that the science and technology innovation board was designed to provide financial support to technology start-ups like Transsion, so a company's research and development potential is among the most important factors in the assessment criteria.
Transsion was asked to demonstrate its sustainable innovation ability and the potential to achieve breakthroughs in key technologies.
In response, Transsion listed 23 core self-developed technologies varying from smart camera applications to battery and fast-charging technologies. The company said that most of the technologies have been specially developed for the African power supply situation and other local users' demands.
Sustainable profitability is another key assessment metric, according to Li.
Transsion explained why it experienced a growth slowdown in 2018, saying that shipments in India dropped last year due to fiercer competition.
The company expects to gain share in emerging markets because of fast-growing demand in those areas, the document said.
According to the SSE's website, there are still three steps left in the approval process before an actual listing - a meeting of the listing committee, registration and the actual IPO.
When reached by the Global Times on Tuesday, the company declined to offer more information about when can it could issue stock, saying it was not allowed to give interviews during this period.
The first batch of companies could get listed as early as the third quarter, Li told the Global Times.
The science and technology innovation board will improve the financing environment for companies and provide a new business model, Li added.
According to the SSE's list, there are 100 companies from various industries in the first batch. The number of companies that had provided responses reached 82, and those that had submitted applications for listing reached 18, according to the current list.
But new start-ups from different industries do pose a tougher challenge for both regulators and investors in terms of identifying which ones are qualified, Li said, and there are no established regulations or standards.
Rivals including Huawei and Xiaomi will not affect Transsion's performance in the African and Indian markets. Transsion will maintain a high market share and brand influence in those markets, according to the response of the company, which is based in Shenzhen, South China's Guangdong Province.
Transsion has build a solid competitiveness that depends on its localized product line, stable sales channels, and data resources, read the response.
The paper was posted on SSE's official site on Monday along with those of 12 other companies.
In Transsion's document, it elaborated on its core technology, business focus, potential risks and its management and operations, responding to 62 questions from the SSE to judge whether the company is qualified for the new board.
Li Daxiao, chief economist at Shenzhen-based Yingda Securities, told the Global Times on Tuesday that the science and technology innovation board was designed to provide financial support to technology start-ups like Transsion, so a company's research and development potential is among the most important factors in the assessment criteria.
Transsion was asked to demonstrate its sustainable innovation ability and the potential to achieve breakthroughs in key technologies.
In response, Transsion listed 23 core self-developed technologies varying from smart camera applications to battery and fast-charging technologies. The company said that most of the technologies have been specially developed for the African power supply situation and other local users' demands.
Sustainable profitability is another key assessment metric, according to Li.
Transsion explained why it experienced a growth slowdown in 2018, saying that shipments in India dropped last year due to fiercer competition.
The company expects to gain share in emerging markets because of fast-growing demand in those areas, the document said.
According to the SSE's website, there are still three steps left in the approval process before an actual listing - a meeting of the listing committee, registration and the actual IPO.
When reached by the Global Times on Tuesday, the company declined to offer more information about when can it could issue stock, saying it was not allowed to give interviews during this period.
The first batch of companies could get listed as early as the third quarter, Li told the Global Times.
The science and technology innovation board will improve the financing environment for companies and provide a new business model, Li added.
According to the SSE's list, there are 100 companies from various industries in the first batch. The number of companies that had provided responses reached 82, and those that had submitted applications for listing reached 18, according to the current list.
But new start-ups from different industries do pose a tougher challenge for both regulators and investors in terms of identifying which ones are qualified, Li said, and there are no established regulations or standards.
"Regulators and investors can only complete the rules as time goes on, and a new investment culture needs to be built so that investors are not too dependent on regulators," Li added.
http://www.globaltimes.cn/content/1148906.shtml
