Tencent Technology reported on January 25 that Mei Zhang, the founder of Meizu Technology, appeared at the company's annual meeting to deliver a new speech. He mentioned that Meizu's sales exceeded 20 million units in 2015 and set a goal for 2016: "steady growth and profit generation," with an aim to advance toward an IPO. This was the first annual meeting led by Huang Zhang, though he didn’t reveal much about the details of "steady growth, profit creation, and advancing into the IPO." However, it's clear that the listing plan has already started taking shape.
A month earlier, Li Nan, vice president of Meizu Technology, announced during a media communication meeting that total sales surpassed 20 million units in 2015, with a year-on-year growth rate of 350%. He also stated that Meizu would control its sales growth in 2016, aiming for 25 million units—only a 25% increase compared to the previous year’s 350%.
On January 4, Meizu issued a statement announcing layoffs, though the affected departments were not disclosed. The number of employees laid off would not exceed 5%. Mei Yongxiang, the president of Meizu, explained the move as part of building a stronger team, referencing Jack Welch’s 2-7-1 theory, which suggests eliminating the bottom 10% of employees annually.
The return of Huang Zhang marked a shift in Meizu’s strategy. Previously known for its strong focus on product excellence, the company had been somewhat isolated from market trends. However, with the rise of Xiaomi in 2011, Meizu faced increased competition. Huang Zhang initially remained focused on product development, but after returning to the company in February 2014, the brand began to adapt, launching the "Charm Blue" sub-brand and adopting a more cost-effective approach.
With the return of Huang Zhang, Meizu started to follow market trends, introducing high-cost-performance models and even securing strategic investment from Alibaba. The brand's positioning became clearer: Charm Blue targets the youth market in the low-end segment, MX offers mid-range value, and PRO is the high-end line. This clear segmentation made the IPO preparation more logical.
Despite strong sales growth in 2015, analysts believe that maintaining a 350% growth rate in 2016 is unlikely. IDC analyst Yan Zhanmeng noted that Meizu is no longer pursuing aggressive expansion, especially in overseas markets. Instead, the strategy has become more cautious.
However, Meizu still relies heavily on the low-end Charm Blue model, which accounts for over 70% of its sales. The average selling price of Meizu phones dropped from 1,900 yuan in 2014 to 1,200 yuan in 2015, raising concerns about its pricing strategy. Analysts suggest that the competitive thousand-yuan market is increasingly challenging, with some companies even selling at a loss.
Guo Lingping of TCL Communication pointed out that Xiaomi sells Red Rice phones at cost, while Charm Blue and LeTV sell below material costs. Despite this, Li Nan claimed that Charm Blue does not offer subsidies, relying instead on higher-capacity versions and gift boxes to boost gross margin.
Meizu’s push into the high-end market through the PRO series could be key to its IPO success. With Alibaba’s investment, the company aims to reduce costs and improve financial performance. However, its brand image as a budget-friendly option may hinder the adoption of high-end products like the PRO5.
Forbes listed Huang Zhang among China’s 400 richest people, ranking him 206th with a net worth of 8.57 billion yuan. Comparisons between Meizu and Xiaomi have emerged, with some suggesting that Meizu’s valuation should be around a quarter of Xiaomi’s, despite lower sales figures.
While Xiaomi achieved rapid growth and a high valuation, its recent challenges have raised doubts. Meizu, facing slower growth, may struggle to match Xiaomi’s valuation. Additionally, the number of models released by Meizu in 2015 reached a peak, and production is expected to decline in 2016.
Overall, Meizu’s journey reflects a transformation from a niche brand to a more diversified and strategically positioned player in the mobile phone industry, with a clear path toward an IPO.
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The above-mentioned industrial power products can accept customized production requirements without minimum order quantity restrictions.
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1. Capacitor testing industry: The main products are capacitor leakage current ripple test power supplies used for capacitor life and quality testing. It is an industrial power supply product mainly adopted by capacitor manufacturers` for products quality control or capacitor use manufacturers` for sourcing capacitor inspections with current endurance life test, according to the variety of output voltage and frequency required for different capacitance tests, the DC output voltage of this power supply is up to 3000V, the AC voltage output is up to 400V, the AC current is up to 400A, and the output frequency can be 50Hz-100KHz according to customer requirements.
2. Capacitor aging industry: The main products are our first-generation high-power DC power supply products, based on the development of IGBT-based hard-switching technology, with high output accuracy, low ripple, high efficiency, fast response speed and good cost advantages, the power supplies are featured with constant voltage, constant current working mode automatic switching function, overvoltage protection circuit, overheat protection circuit, short circuit protection function. For the convenience of industry users, this power supply can also add customized functions, such as: automatic shutdown for load discharge function, overvoltage, overcurrent protection value preset and view function and pulse aging function, etc., to adapt to the use of sophisticated capacitors of capacitor manufacturers.
3. Surface treatment industry: The DC rectifier based on the high frequency switching technology of IGBT switching devices is a product developed by our company for industrial applications such as electroplating, electrolysis, water treatment, and hard oxidation. There is no mandatory requirement for output ripple in this industry application. So, this industrial power products do not put too much LC circuit processing to the input and output ends. It has high requirements for output current stability and long-term operation capability, mostly low-voltage and high-current output, up to 2000KW, with ultra-high DC output of 50000A.
To overcomes the harsh application environment and long-term operating conditions. The industrial power supplies basically adopt water cooling, and the internal components of the power supplies are treated with three preventions, which can realize the effective heat dissipation and effective protection of internal devices of the power supply.
The above-mentioned industrial power products can accept customized production requirements without minimum order quantity restrictions.
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