(Yicai) Sept. 18 -- Shares of China’s Transsion Holdings, the biggest seller of phones in Africa, jumped after it said the Chinese authorities have released Chief Financial Officer Xiao Yonghui, who had been detained for questioning.

Transsion [SHA: 688036] finished 4.2 percent higher at CNY79.50 (USD11.22) a share today, while the broader Shanghai stock market rose 0.5 percent.

The Supervisory Commission of Zhen'an district in Dandong, Liaoning province has released Xiao Yonghui, a spokesperson for Transsion told Yicai. “Xiao is now able to perform his duties, and the company's production and operations are running smoothly,” the person added, without disclosing any further details about the investigation.

The Shenzhen-based firm announced on Sept. 6 that it had been notified of Xiao's detention and investigation by the Supervisory Commission of Zhen'an. It also did not provide any details then.

Xiao, who has been CFO since 2014, received a pre-tax annual salary of CNY3.9 million (USD543,325) last year, according to the company's 2023 earnings report.

Transsion, known colloquially in China as the 'Africa Phone King,' announced in July that a number of its executives, including Xiao, planned to invest CNY10.8 million to CNY14 million (USD1.5 million to USD2 million) to increase their stakes in the firm over the six months from July 16.

The company's second-quarter phone shipments rose 4.1 percent to 25.5 million units from a year earlier, ranking fifth globally and first in Africa, according to data from market research firm Omdia.

But Transsion is facing some difficulties. It was sued by Qualcomm in India in July because it "declined to accept a license from Qualcomm for the majority of its mobile products," the Financial Times reported, citing Qualcomm's General Counsel Ann Chaplin. The US chip giant has also filed claims in Europe and China against Transsion over alleged patent infringement, Chaplin noted.

Moreover, Transsion's net profit shrank 22 percent to CNY1.2 billion (USD168.8 billion) in the second quarter from the previous after revenue rose 8.6 percent to CNY17.1 billion (USD2.4 billion). First-half profit surged 36 percent to CNY2.9 billion from a year ago on a 38 percent jump in revenue to CNY34.6 billion.

Also Transsion’s smartphone shipments fell in the second quarter from the first quarter, slipping from fourth- to fifth-largest globally.

Editor: Futura Costaglione