Transsion, the Chinese smartphone manufacturer that dominates Africa's mobile market, finds itself in turbulent waters. Known as the "King of Africa" for its near 50 market share on the continent, Transsion is now grappling with a combination of legal battles, increased competition from fellow Chinese brands, and the recent detention of its chief financial officer, Xiao Yonghui.
The Shenzhen-based company announced that Xiao was detained by authorities in Dandong, northeastern China, as part of an ongoing investigation. Transsion has not provided details on the charges but has assured investors that the probe will not significantly impact daily operations.
The company is not aware of the progress or conclusion of the investigation, it stated in a filing with the Shanghai Stock Exchange last week, adding that its comprehensive governance structure should help it weather this storm.
However, the market reacted to the uncertainty, with Transsion's shares falling nearly 5 , per the Financial Times, following the news of Xiaos detention. The arrest comes at a challenging time for the company, as it fends off intensifying competition and patent lawsuits.
Challenges in AfricaTranssion, which built its empire selling affordable Tecno, Infinix, and Itel phones, has seen its grip on the African market start to loosen. The company's market share in Africa dropped to 42 in the second quarter of 2024, down from 46 in the same period of 2023, according to data from Counterpoint Research.
